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1998

The court of appeals ruled that NC’s drug tax was actually a criminal penalty and not just a tax, thus it was not in compliance with the constitution’s double jeopardy clause. Instead of getting rid of the drug tax, NC’s General assembly amends the law yet again, making the following changes: 

(1) lowered the rate at which it taxed cocaine from $200 per gram to $50 per gram; (2) lowered the rate at which it taxed drugs based on dosage units from $400 per 10 dosage units to $200 per 10 dosage units; and (3) completely abolished the special penalty and interest section and replaced it with the general interest and penalty provisions applicable to all taxes paid in North Carolina, effectively reducing the penalty for late payment from 50% to 10-40%.

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