Tennessee Continues to Enforce 'Crack Tax'

Tennessee's unauthorized substance tax is currently under legal challenge.

hide captionTennessee's unauthorized substances tax is currently under legal challenge.

For a second consecutive year, Tennessee has collected more than $1.5 million in revenue from its so-called "crack tax." The state has been enforcing a tax on illegal substances that drug dealers can report without fear of prosecution.

But once arrested, dealers must prove they've paid the tax or face fines or property seizure. A local judge has called it unconstitutional but the state is appealing saying it will help deter crime and boost tax coffers.

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