Tennessee Code Annotated

Tenn. Code Ann. § 67-4-2801 (2026)

Purpose

✓ current as of May 2026
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The purpose of this part is to levy a tax on every merchant of unauthorized substances to generate revenue for state and local law enforcement agencies for use by those agencies to investigate, combat, prevent and reduce drug crimes, and for the general fund. Such tax shall be measured by the quantity of unauthorized substances sold, bartered, traded, or distributed to another for consideration or the quantity of unauthorized substances possessed with intent to sell, barter, trade, or distribute to another for consideration. This is not a criminal statute. It is a civil taxing measure contributing to the general revenue fund and a civil remedial measure designed to mitigate against the enormous costs of law enforcement related to drug control for state and local government. Nothing in this part may in any manner provide immunity from criminal prosecution for a person who possesses an illegal substance.

Acts 2004, ch. 803, § 2; 2010, ch. 962, § 1.


Notes of Decisions
Cited in 5 cases, 2008–2012 · leading case: Steven Waters v. Reagan Farr, Comm'r of Revenue for the State of Tennessee, 291 S.W.3d 873 (Tenn. 2009).
Steven Waters v. Reagan Farr, Comm'r of Revenue for the State of Tennessee, 291 S.W.3d 873 (Tenn. 2009). · cites it 30× “Acts 1840 (codified at Tenn. Code Ann. §§ 67-4-2801 to -2811 (Supp.”
Wicker v. Comm'r, 342 S.W.3d 35 (Tenn. Ct. App. 2010). · cites it 4× “Williams (the “Plaintiffs”) on September 14, 2007, pursuant to Tennessee Code Annotated section 67-4-2801, et seq. (the “Drug Tax”), which, effective January 1, 2005, taxed “unauthorized substances and illicit alcoholic beverages.”
State of Tennessee v. John Shields (Tenn. Crim. App. 2008). · cites it 8× “” Tenn. Code Ann. § 67-4-2801 . The fact that the legislature did not intend for the drug tax to bar subsequent criminal prosecution is expressly set forth: “Nothing in this part may in any manner provide immunity from criminal prosecution for a person who possesses an illegal…”
Steven Waters v. Reagan Farr, Comm'r of Revenue for the State of Tennessee - Concurring/Dissenting (Tenn. 2009). · cites it 2× “Acts 1840 (codified at Tenn. Code Ann. §§ 67-4-2801 , -2811 (2006 & Supp.”
James W. Swafford, Jr. v. Comm'r of Revenue (Tenn. Ct. App. 2012). “82 for amounts due pursuant to the unauthorized substance tax then codified at Tennessee Code Annotated § 67-4-2801, et. seq. In July 2009, the Tennessee Supreme Court held that the unauthorized substance tax was unconstitutional.”
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