Drug tax should have gone to schools
 WINSTON-SALEM (AP) – State officials gave 375 law enforcement agencies $2.4 million that should have gone to schools from North Carolina’s tax on illegal drugs and legislators are re*quiring that it be repaid.
  Revenue Department spokeswoman Kim Brooks said the error was an over*sight. The department was uncertain about a 2005 rul*ing by the state Supreme Court on whether fines went to schools.
  “I guess that’s basically what that was, an error or oversight by the depart*ment,” Brooks said. “It’s something that happened and it’s something that we’re going to correct.” The ruling said penal*ties on the drug tax should be paid to schools and the tax and interest could be divided with the state and law enforcement agen*c i es.
  Legislators voted to re*quire that the department repay the schools with its own funds and that it must repay itself by withholding money from law enforce*ment agencies.
  “This is a way to correct a mistake that was made,” said state Sen. Kay Hagan, D -G u i l fo rd .
  The largest overpayment was $342,000 to the Charlotte* Mecklenburg police and the smallest was 13 cents to the Andrews department.
  Drugs, moonshine and oth*er illegal substances taken during investigations are taxed and police frequently take property such as real es*tate and vehicles to pay the tax.
 


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