A main source of revenue for state and local law enforcement agencies in North Carolina is excise tax on controlled substances like marijuana, cocaine, and illegal liquors. It is common for a person that has been charged with possession, distribution, intent to sell controlled substances or illegal liquors to not only possibly be found guilty but fulfil a tax obligation to the state of North Carolina. The crime in which an individual is charged (drug trafficking or possession of drugs) is completely separate and apart from sales taxes.
Statute
Under North Carolina General Statute § 105-113.106, a “dealer” can be a person who actually or constructively possesses more than 42.5 grams of marijuana, seven or more grams of any other controlled substance that is sold by weight, or 10 or more dosage units of any other controlled substance that is not sold by weight. On top of that:
- A person who in violation of Chapter 18B of the General Statutes possesses illicit spirituous liquor for sale.
- “Illicit Spirituous Liquor” can be products like bootleg liquor, moonshine, non-tax-paid liquor, and even white liquor.”
- A person who in violation of Chapter 18B of the General Statutes possesses mash.
- “Mash” is the fermentable starchy mixture from which spirituous liquor can be distilled.
- A person who in violation of Chapter 18B of the General Statutes possesses an illicit mixed beverage for sale.
Under N.C.G.S. § 105-113.107, a tax is imposed on controlled substances possessed either actually or constructively, by dealers at the following rates:
- At the rate of forty cents (40¢) for each gram, or fraction thereof, of harvested marijuana stems and stalks that have been separated from and are not mixed with any other parts of the marijuana plant.
- At the rate of three dollars and fifty cents ($3.50) for each gram, or fraction thereof, of marijuana, other than separated stems and stalks taxed, or synthetic cannabinoids.
- At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of cocaine.
- At the rate of fifty dollars ($50.00) for each gram, or fraction thereof, of any low-street-value drug that is sold by weight.
- At the rate of two hundred dollars ($200.00) for each gram, or fraction thereof, of any other controlled substance that is sold by weight.
- At the rate of fifty dollars ($50.00) for each 10 dosage units, or fraction thereof, of any low-street-value drug that is not sold by weight.
- At the rate of two hundred dollars ($200.00) for each 10 dosage units, or fraction thereof, of any other controlled substance that is not sold by weight.
How Does the NC Dept. Of Revenue Find Out?
Every local law enforcement agency and every State law enforcement agency must report to the NC Department of Revenue within 48 hours after seizing an unauthorized substance, or making an arrest of an individual in possession of an unauthorized substance, listed in the statute upon which a stamp has not been affixed.
What Do I Do Next if I Receive a Tax Letter?
First and foremost, CALL US. We have great experience in dealing with unexpected tax letters along with criminal charges involving illegal substances. Our experienced criminal defense has worked on an enormous amount of cases just like yours.
Secondly, it is very important to contact us immediately upon receipt of the letter because there is a hard deadline. The hard deadline is a 45 day deadline to request a review with the North Carolina Department of Revenue. If this is not done, the review will be noted as forfeited and the tax amount can be final. This can leave you in an enormous hole. Lastly, the State can seek civil action as well as garnish wages against you.