Iowa’s Tax Stamp Requirement A Catch-22

Jim Finnel

Fallen Cannabis Warrior & Ex News Moderator
Controlled substances may be illegal, but the government still taxes them.

This Catch-22 in Iowa law is getting many people charged with a Class D felony.

"The law requires that, after a certain amount of controlled substance is obtained - the amount varies depending on the substance - a tax stamp must be adhered to the drug," said Sgt. Luke Fleener, Webster County Sheriff's Department.

Failure to have a drug tax stamp on the controlled substance will result in a charge, in addition to being charged with possession of the illegal substance.

People can get the drug tax stamp at the Iowa Department of Revenue Office in Des Moines or send in a request form.

Paul Benson, manager of taxpayer service, said the stamps can be obtained anonymously to protect the citizen's Fifth Amendment right against self-incrimination. The only time he would need a name or address is to send the stamp to them through the mail, he said.

He said, despite the promise of no prosecution for ordering the stamps there have been no tax stamps sold in 2008.

"I've only sold two batches in the past four years," Benson said.

He said people may shy away from getting the stamps because of the price.

"You can only get them if you order at least $215 worth at one time," Benson said. "You can't come in with $5 and get one marijuana tax stamp."

However, if the controlled substance doesn't have a stamp, it may cost the person more than $215. Failure to have a drug tax stamp is a Class D felony punishable with up to five years in prison and a fine of up to $7,500.

Benson said people might buy the stamps and just carry them around instead of putting them on the products.

"They think they can just pull them out if they get caught, but that's not how it works," he said. "The stamps have to be on the substance."

It would be a waste of money not to use the stamps right away because the stamps expire after 6 months, Benson said.

He said the stamps have other uses too.

"Stamp collectors will get together to purchase them sometimes," Benson said. "Or at least, that's what they tell me."

Tax rates for drugs
- $5 per gram for processed marijuana
- $750 per unprocessed marijuana plant


News Hawk: User: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: The Messenger
Author: KATIE WILLIAMS
Copyright: 2008 The Messenger
Contact: Messenger News
Website: Iowa?s tax stamp requirement a Catch-22
 
"Stamp collectors will get together to purchase them sometimes," Benson said. "Or at least, that's what they tell me."

Oh yeah, me and my buddies LOVE to go collect those substance stamps.

ARE YOU KIDDING ME?

this is so backwards.
 
that seems like double jeopardy somehow.. obviously not being tried twice but effectively you are being charged for the same crime twice... BS as usual
 
Re: Iowa's Tax Stamp Requirement A Catch-22

^^

Good point and I completely agree.

20 states have tax stamp laws and 13 of them have been challenged on grounds of either self incrimination or double jeopardy.

Unfortunately only a couple of the challenges succeeded and the pols modified those laws to squeeze back into conformance

Seems totally unfair to me
 
Re: Iowa's Tax Stamp Requirement A Catch-22

This is the strangest thing I've ever heard. I'd never heard of a tax stamp before today. FloridaBud explained as he is from a state that actually has them. I just don't get it... It's illegal, but you can by tax stamps for it? Wow! Way to really screw with people state government! Great job!
 
The stamps don't make you legal - they just block one of the ways they can punish you.

The bad part is the tax stamp violations are felonies in some states where possession is a misdomeanor. Kind of like an extra axe they can hold over your head when plea bargaining

For example; Kentucky, possession of up to 8Z is a misdemeanor - max 1 year. The tax stamp violation is a class C felony for anything over 42.5grams

I don't know how often they use this law, but it does suck
 
This is old school law enforcement. This is how the original out-lawing of cannabis started and these states that still have these laws go back to the 30's or 40's.
 
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