Tax Stamp And Refunds Available In Tennessee

[Michael Komorn]

Tax Stamp and Refunds Available In Tennessee.

By Brian Haas

THE TENNESSEAN

 

September 28, 2010

 

http://www.tennessean.com/article/20100928/NEWS03/9280351/2+772+people+could+be+eligible+for++crack+tax++refunds+in+TN

 

When Williamson County Sheriff Ricky Headley was busted for illegal

prescription pills, the state taxed him $13,000 on the value of those drugs.

 

Headley paid the tax, resigned as sheriff, pleaded guilty to four drug

counts and one count of official misconduct, and got just under five years'

probation.

 

Then, he got his money back. Plus interest.

 

"I got every penny back," said his Nashville lawyer, David Raybin.

 

Tennesseans in a slow trickle have requested and gotten refunds from the

state since the Tennessee Supreme Court struck down the so-called crack tax

law in 2009. The state Department of Revenue has refunded $3.7 million to

161 people, but 2,772 people who paid the tax have not gotten any money

back.

 

The law required people who bought or sold illicit drugs to buy a tax stamp

for the amount of drugs they had. If they didn't, state agents seized their

property and raided their bank accounts until the state got whatever amount

was owed.

 

"Most of them just don't know, and the state doesn't have any intention of

letting them know, that they're eligible for a full refund," said Columbia

attorney John Colley, who is leading a class-action lawsuit that would allow

attorneys to identify and notify all people who paid the tax while it was

still on the books.

 

Critics called the law absurd, but it went into effect in 2005.

 

It didn't take long for the state to go after drug suspects. Attorneys

rattle off horror stories of surprise seizures with revenue agents chasing

people down.

 

"They've broken children's piggy banks. They've taken properties that have

been in families for generations," said Knoxville attorney Philip Lomonaco,

the attorney who got the law struck down. "They've actually chased people

down at the courthouse to get gold chains. It's ruthless."

 

Though the public may have little sympathy for drug dealers and users, the

tax seizures typically came before a suspect was even convicted.

 

The state took $30,000 from one of Lomonaco's clients before he was

convicted on a marijuana charge, and the man lost his house.

 

Law struck down in '09

 

The state Supreme Court struck the law down in July 2009 as

unconstitutional, saying the legislature overstepped its taxing authority.

Basically, drug dealers and users didn't fit into the category of

"merchants" or "peddlers" under state law, so they couldn't be taxed.

 

By that time, the state had collected $10.3 million from people. And every

person who paid was eligible for a refund.

 

"Before the sun set on the Cumberland, I was filing claims," Raybin said.

"I've been filing claims left and right, and they will give you a refund as

long as you fall within certain parameters."

 

If Colley's class-action suit is successful before the state Supreme Court,

everyone who paid the crack tax will receive a notice that they could be

eligible for a refund. If it fails, they're on their own, and some who paid

the crack tax ╉ namely those who paid in 2005 and 2006 ╉ won't be able to

get refunds because the statute of limitations has passed.

 

The Supreme Court has not yet said whether it will hear the case.

 

Legislators in May passed a new version of the crack tax. The new law, which

took effect July 1, targets only cases that involve drugs worth $10,000 or

more.

 

It also redefines drug dealers to be considered "merchants," like any other

business in the state, and therefore taxable.

 

"We really didn't define what a dealer was," said state Rep. Charles

Curtiss, D-Sparta, who helped sponsor the original and the new crack tax

legislation. "We were making an assumption when we caught someone with X

amount of marijuana or X amount of drugs that they were selling it."

 

Curtiss said the new law was drafted with input from the Tennessee attorney

general's office to make it more resistant to challenges.

 

So far, nobody has been assessed the new tax. But attorneys are predicting a

similar outcome the second time around once the tax agents come knocking.

 

"I don't think there's any way to make this kind of law constitutional,"

Colley said.

 

Contact Brian Haas at 615-726-8968 or bhaas@tennessean.com.

 

 

Michael A. Komorn

Attorney and Counselor

Law Office of Michael A. Komorn

3000 Town Center, Suite, 1800

Southfield, MI 48075

800-656-3557 (Toll Free)

248-351-2200 (Office)

248-357-2550 (Phone)

248-351-2211 (Fax)

Email: michael@komornlaw.com

Website: www.komornlaw.com

Check out our Radio show:

http://www.blogtalkradio.com/planetgreentrees

NEW CALL IN NUMBER: (347) 326-9626

Live Every Wednesday 8-9:30 p.m.

PLANET GREENTREES

w/ Attorney Michael Komorn

 

The most relevant radio talk show for the Michigan Medical Marijuana Community. PERIOD.

 

If you have a medical marihuana question or comment, please email them to me, or leave them on the forum for the MMMA, and I will try to answer them live on the air.

 

http://www.blogtalkradio.com/planetgreentrees

PLANET GREENTREES Call-in Number: (347) 326-9626

Call-in Number: (347) 326-9626

[Michigandr]

Tax Stamp and Refunds Available In Tennessee.

By Brian Haas

THE TENNESSEAN

 

September 28, 2010

 

http://www.tennessean.com/article/20100928/NEWS03/9280351/2+772+people+could+be+eligible+for++crack+tax++refunds+in+TN

 

When Williamson County Sheriff Ricky Headley was busted for illegal

prescription pills, the state taxed him $13,000 on the value of those drugs.

 

Headley paid the tax, resigned as sheriff, pleaded guilty to four drug

counts and one count of official misconduct, and got just under five years'

probation.

 

Then, he got his money back. Plus interest.

 

 

"I got every penny back," said his Nashville lawyer, David Raybin.

 

Tennesseans in a slow trickle have requested and gotten refunds from the

state since the Tennessee Supreme Court struck down the so-called crack tax

law in 2009. The state Department of Revenue has refunded $3.7 million to

161 people, but 2,772 people who paid the tax have not gotten any money

back.

 

The law required people who bought or sold illicit drugs to buy a tax stamp

for the amount of drugs they had. If they didn't, state agents seized their

property and raided their bank accounts until the state got whatever amount

was owed.

 

"Most of them just don't know, and the state doesn't have any intention of

letting them know, that they're eligible for a full refund," said Columbia

attorney John Colley, who is leading a class-action lawsuit that would allow

attorneys to identify and notify all people who paid the tax while it was

still on the books.

 

Critics called the law absurd, but it went into effect in 2005.

 

It didn't take long for the state to go after drug suspects. Attorneys

rattle off horror stories of surprise seizures with revenue agents chasing

people down.

 

"They've broken children's piggy banks. They've taken properties that have

been in families for generations," said Knoxville attorney Philip Lomonaco,

the attorney who got the law struck down. "They've actually chased people

down at the courthouse to get gold chains. It's ruthless."

 

Though the public may have little sympathy for drug dealers and users, the

tax seizures typically came before a suspect was even convicted.

 

The state took $30,000 from one of Lomonaco's clients before he was

convicted on a marijuana charge, and the man lost his house.

 

Law struck down in '09

 

The state Supreme Court struck the law down in July 2009 as

unconstitutional, saying the legislature overstepped its taxing authority.

Basically, drug dealers and users didn't fit into the category of

"merchants" or "peddlers" under state law, so they couldn't be taxed.

 

By that time, the state had collected $10.3 million from people. And every

person who paid was eligible for a refund.

 

"Before the sun set on the Cumberland, I was filing claims," Raybin said.

"I've been filing claims left and right, and they will give you a refund as

long as you fall within certain parameters."

 

If Colley's class-action suit is successful before the state Supreme Court,

everyone who paid the crack tax will receive a notice that they could be

eligible for a refund. If it fails, they're on their own, and some who paid

the crack tax ╉ namely those who paid in 2005 and 2006 ╉ won't be able to

get refunds because the statute of limitations has passed.

 

The Supreme Court has not yet said whether it will hear the case.

 

Legislators in May passed a new version of the crack tax. The new law, which

took effect July 1, targets only cases that involve drugs worth $10,000 or

more.

 

It also redefines drug dealers to be considered "merchants," like any other

business in the state, and therefore taxable.

 

"We really didn't define what a dealer was," said state Rep. Charles

Curtiss, D-Sparta, who helped sponsor the original and the new crack tax

legislation. "We were making an assumption when we caught someone with X

amount of marijuana or X amount of drugs that they were selling it."

 

Curtiss said the new law was drafted with input from the Tennessee attorney

general's office to make it more resistant to challenges.

 

So far, nobody has been assessed the new tax. But attorneys are predicting a

similar outcome the second time around once the tax agents come knocking.

 

"I don't think there's any way to make this kind of law constitutional,"

Colley said.

 

Contact Brian Haas at 615-726-8968 or bhaas@tennessean.com.

 

 

Michael A. Komorn

Attorney and Counselor

Law Office of Michael A. Komorn

3000 Town Center, Suite, 1800

Southfield, MI 48075

800-656-3557 (Toll Free)

248-351-2200 (Office)

248-357-2550 (Phone)

248-351-2211 (Fax)

Email: michael@komornlaw.com

Website: www.komornlaw.com

Check out our Radio show:

http://www.blogtalkradio.com/planetgreentrees

NEW CALL IN NUMBER: (347) 326-9626

Live Every Wednesday 8-9:30 p.m.

PLANET GREENTREES

w/ Attorney Michael Komorn

 

The most relevant radio talk show for the Michigan Medical Marijuana Community. PERIOD.

 

If you have a medical marihuana question or comment, please email them to me, or leave them on the forum for the MMMA, and I will try to answer them live on the air.

 

http://www.blogtalkradio.com/planetgreentrees

PLANET GREENTREES Call-in Number: (347) 326-9626

Call-in Number: (347) 326-9626

 

 

Gimme that gold cross boy!...lol

[Ms Chocolate]

Is this like the Marijuana Tax Stamp where you had to be growing to qualify for the stamp, but you could not qualify unless you were growing?

 

Can you be a perspective or low-level merchant and apply for this new stamp, just in case? It’s best to be safe than sorry.