Man Sues Over $11,000 Tax Assessed For Selling Marijuana At Bonnaroo Without A TN Tax Stamp

[DeSwiss]

Lawsuit: Taxman's bite of marijuana treat too big

The Tennessean
By CLAUDIA PINTO,Staff Writer
Sunday, 08/26/07

A little snap, crackle and marijuana got a concertgoer popped at Bonnaroo. Now William J. Hoak is suing state officials for over-taxing the confiscated "rice creeper treat," a Rice Krispies treat that contains marijuana. In court papers, Hoak claims the marijuana was taxed based on the weight of the Rice Krispies treat — which includes cereal, marshmallows, among other ingredients — not just the marijuana.

Hoak has been fined $11,506 in taxes, interest and penalties by the state's Department of Revenue for the rice creeper treat, according to the lawsuit. "It's not like it was a pan of Rice Krispies treats like your mama would bring you," said Jonathan A. Street, Hoak's Nashville lawyer. "It wasn't a large amount of Rice Krispies treats. These taxes are just really high."

Drug stamps are issue
Through the state's Taxation of Unauthorized Substances Act, people arrested for illegal drug possession are taxed based on the drug's weight, Street said. Anyone with illegal drugs can avoid being fined for tax evasion by anonymously buying stamps from the Tennessee Department of Revenue. But possession of the drugs is still against the law, he said.

"It's the penalties for not getting these stamps beforehand that really costs people who get arrested," Street said. "Who in their right mind is going to go into a state building and purchase stamps for their illegal drugs? I'm sure they haven't sold any of them." Hoak specifically names Loren L. Chumley, former commissioner of the Tennessee Department of Revenue and Paul G. Summers, the former attorney general, in his lawsuit.

http://www.tennessean.com/apps/pbcs.dll/article?AID=/20070826/NEWS01/708260377

Unofficial TN
Pot Stamp

- Getting a marijuana tax stamp "anonymously" from the Dept. of Revenue must be like pinning a bullseye on your back. I wonder if anyone's ever been stupid enough to do it? Although, I would be interested in seeing the formula that they used to calculate his tax due amount. Sounds like they based it all on calories per serving.....