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About: Crack tax


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The crack tax was the name given to the taxes on illegal drugs in Tennessee. The tax, under a law passed by the Tennessee General Assembly in January 2005, was applied to illegal substances including cocaine, marijuana, and moonshine. Drug dealers were required to pay anonymously at the state revenue office, where they received a stamp to prove their payment. If a drug dealer was arrested without having a stamp, the state would seek the money owed it. In 2009 the Tennessee Supreme Court judged in a 3-2 ruling that the Crack Tax is unconstitutional, and repealed it.

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