2008 News Releases
For Immediate Release: July 6, 2005
NEW UNAUTHORIZED SUBSTANCES TAX BRINGS IN MORE
THAN HALF A MILLION DOLLARS IN FIRST SIX MONTHS
NASHVILLE, Tenn. - Since becoming effective Jan. 1, 2005, Tennessee 's unauthorized substances tax has resulted in $606,687 in collections and $15,084,354 in assessments. This is a state excise tax on controlled substances, created by Public Chapter 803. The tax applies to controlled substances and certain illicit alcoholic beverages, including cocaine, crack, methamphetamine, liquors and spirits, and marijuana.
"The department has been successful in its first six months of administering, assessing and collecting this new tax designed to channel funds collected into local law enforcement agencies to help combat, prevent and reduce drug crimes in Tennessee," said Revenue Commissioner Loren L. Chumley.
The tax applies to substances in the hands of a dealer. The tax is payable within 48 hours of the dealer acquiring the substance. The commissioner will issue stamps to be affixed to the substances to indicate payment of tax. Information obtained in accordance with this act cannot be used in criminal prosecutions, and nothing in the act provides immunity from criminal prosecution. If caught with unauthorized substances that do not have stamps, the Department of Revenue will collect all taxes due on those substances.
For more information, visit our Web site, www.Tennessee.gov/revenue, or call (615) 741-7071. To get an application for stamps, call statewide toll-free (800) 342-1003 or (615) 253-0600 if in the Nashville area or outside of Tennessee.
The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.TN.gov/revenue.
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