About The Unauthorized Substances Tax
(North Carolina General Statutes 105-113.105 Through 105-113.113)
What is the unauthorized substances tax?
The unauthorized substances tax is an excise tax on controlled substances (marijuana,
cocaine, etc.), illicit spirituous liquor ("moonshine"), mash and illicit mixed
Who is required to pay the tax?
The tax is due by any individual who possesses an unauthorized substance upon
which the tax has not been paid, as evidenced by a stamp.
When is the tax due?
The tax is payable within 48 hours after an individual acquires possession
of an unauthorized substance upon which the tax has not been paid, as evidenced
by a stamp.
Do I have to identify myself when I pay the tax?
No. Individuals who purchase stamps from the Department of Revenue are not
required to give their name, address, social security number, or other identifying
What should I do with the stamps that I receive after
I pay the tax?
The stamps must be permanently affixed to the unauthorized substance. Once
the tax due on an unauthorized substance has been paid and the stamps affixed,
no additional tax is due even though the unauthorized substance may be handled
or possessed by other individuals in the future.
Will the Department of Revenue notify law enforcement
if I purchase stamps to affix to my unauthorized substances?
No. Not withstanding any other provision of law, information obtained pursuant
to the unauthorized substances tax law is confidential and may not be disclosed
or, unless independently obtained, used in a criminal prosecution other than
a prosecution for a violation of the unauthorized substances tax law. Revenue
employees who divulge information regarding stamp purchasers to law enforcement
shall be guilty of a Class 1 misdemeanor.
How are unauthorized substances tax collections used?
Seventy-five percent (75%) of the money collected is returned to the state
or local law enforcement agency whose investigation led to the assessment. The
remaining twenty-five percent (25%) of the money collected is credited to the
If I purchase stamps will I then be in legal possession
of the drugs?
No, purchasing stamps only fulfills your civil unauthorized substance tax obligation.
You will still be in violation of the criminal statues of North Carolina for
possessing the drugs.
What number can I call to get an application for stamps
or more information on the unauthorized substances tax?
on: 10/31/07 03:58:43 PM.