Court Finds 'Crack Tax' Unconstitutional

NBC TV Chicago reports:

Tennessee's tax on illegal drugs is "arbitrary, capricious and unreasonable," an appeals court declared in ruling the "crack tax" was unconstitutional because it derives revenue from illegal activities.

The law allows the state to go after the belongings of people who are caught with illegal drugs or alcohol that don't bear the special tax stamps, regardless of the outcome of their criminal cases.

Critics have argued that defendants acquitted on drug charges can still be forced to pay thousands of dollars or turn over property because the Department of Revenue's burden of proof is lower than it is in criminal cases.
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Steven Waters, a carpenter, challenged the statute last year after Revenue agents sought to seize his home after a drug sting. A county judge found the drug tax violated the Fifth Amendment right against self-incrimination.

In the ruling dated Thursday and released Friday, a three-judge Court of Appeals panel unanimously agreed it was unconstitutional, but for a different reason.

"Because it seeks to levy a tax on the privilege to engage in an activity that the Legislature has previously declared to be a crime, not a privilege, we must necessarily conclude that the drug tax is arbitrary, capricious, and unreasonable, and therefore, invalid under the constitution of this state," Judge Sharon G. Lee wrote.

It's not everyday that a law gets declared unconstitutional.