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NC collects tax on people selling pot, cocaine, other illegal drugs


The state of North Carolina is collecting taxes from people selling pot and cocaine, moonshine and other illegal drugs.

So far this fiscal year, the Department of Revenue has collected more than $5 million in taxes on illegal drugs and liquor.

The tax is officially called the Unauthorized Substance Tax.

For an explanation, CBS 17 News asked Jocelyn Andrews, the chief operating officer of the Department of Revenue.

“A little unusual, it was not our usual tax of income tax be it personal or corporate or sales tax,” Andrews said.

Paying the tax doesn’t mean a dealer or moonshiner has a license to sell their wares legally in North Carolina.

It is a pretty straight forward process, the form doesn’t require a name just an address where the Department of Revenue can send the stamp, or you can buy them in person.

“The statute number one prohibits us from releasing any taxpayer information for any tax type but it is also very specific that this tax type that information can’t be turned over to law enforcement and can’t be used in a criminal action against somebody that would be in possession or purchasing these stamps,” Andrews said.

For those that voluntarily pay the tax, marijuana is taxed by weight, stems and stalks are taxed at 40 cents a gram over 42.5 grams.

The leafy part of the plant is taxed at a rate of $3.50 a gram over 42.5 grams.

Under North Carolina law, possession of more than 42.5 grams or an ounce and half is considered a felony, there are no exceptions under the current law for personal use.

The tax on cocaine is $50 a gram over 7 grams.

Meth, heroin and other drugs sold by weight are taxed at $200 a gram over 7 grams.

Pills are taxed by the dose at 200 dollars per pill over 10 doses.

Moonshine $12.80 a gallon.

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