By DAVID TEWES •
Originally published July 14, 2009 at 3:24 p.m., updated July 14, 2009 at 10:20 p.m.
Chapter 159 of the Texas Tax Code defines which controlled substances are taxed and the amount of the tax.
The tax rate is:
$200 for each gram of a controlled substance, counterfeit substance or simulated controlled substance.
$3.50 for ...
Chapter 159 of the Texas Tax Code defines which controlled substances are taxed and the amount of the tax.
The tax rate is:
$200 for each gram of a controlled substance, counterfeit substance or simulated controlled substance.
$3.50 for each gram of marijuana.
$2,000 for each 50-dosage unit or less of a controlled substance not sold by weight.
If criminals can make money from illegal drugs, why can't the city of Victoria?
That's the question recently elected Council Member Gabriel Soliz asks as he tries to find innovative ways to fund the city coffers.
"As much as we're tax-strapped right now, we need to find alternative sources of revenue," he said. "But this has absolutely nothing to do with legalizing drugs."
The Texas Tax Code allows for taxes to be imposed on the possession, purchase, acquisition and production of controlled substances. Those proceeds go to the state's general fund and not to the local agency making the drug bust, he said.
"So, there is no incentive for local municipalities to want to enforce the code," Soliz said. "Why put yourself in harm's way when the state won't give you anything back for it?"
Soliz contacted the office of State Rep. Geanie Morrison, R-Victoria, to ask if the Legislature could make allowances for the city to get part of that money.
While the Legislature won't meet again until 2011, Soliz said there's no reason he can't work with Morrison now to devise a plan.
Justin Unruh with Morrison's office said the tax question is being researched.
"Basically, we had never heard anything about it," he said. "So, we're looking into it, but we have not gotten information about it at this point."
Police Chief Bruce Ure said he also is unaware of the tax code provision.
A spokesperson for the state comptroller's office confirmed that the tax proceeds go into the state's general fund.
A person owes a tax on the drugs and is fined for possessing them without proof the tax was paid. The county ends up with a penalty that is equal to the amount of unpaid tax.
There is a potential for the change to be a lucrative one for Victoria because of the amount of drugs transported on U.S. Highway 59, Soliz said. He hopes his proposed change will also benefit law enforcement.
"Even if all we're going to do is capture mules, it would take them off the streets and force them to have to give up somebody's name," he said.
A mule is slang for a person who smuggles or delivers illicit substances such as drugs.
