Unauthorized Substances

It is an excise tax on controlled substances (marijuana, cocaine, etc.), illicit spirituous liquor ("moonshine"), mash, and illicit mixed beverages.

An excise tax is similar to a sales tax, but it's levied only on certain products, activities, or services. The most common excise taxes are imposed on tobacco, alcohol, gasoline, and betting.

The tax is due by any individual who possesses an unauthorized substance upon which the tax has not been paid as evidenced by a tax stamp.

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 tax paid stamp.

You can buy Tax Stamps two ways:

• In person at a service center, between the hours of 8 a.m. and 5 p.m., Monday through Friday.
• Mail in the completed BD-1 or BD-1L form (it includes the number of tax stamps you would like to buy) along with payment in full. 
  • Tax paid stamps are mailed certified mail to the address listed on the BD-1/BD-1L form. If you do not wish to list your name and/or SSN, you may remain anonymous, but you must have a valid mailing address.
  • Mail Tax Stamp order to:
    North Carolina Department of Revenue
    PO Box 871
    Raleigh, NC 27602 
     

No. Individuals do not have to give their name, address, social security number, or other identifying information to buy Tax Stamps.

Buyers may remain anonymous. However, if you do not provide a valid mailing address, then the purchase must be done in person at an NCDOR service center.

Use the following acceptable forms of payment for in person sales:

• Cash - Exact change only. NCDOR cannot provide change at the time of purchase in a service center. Note, if you are mailing in your payment, do not send cash.
• Certified funds/cashier's check made out to NCDOR.
• Money order.

No. Call (919) 707-7596 to schedule an appointment to buy Unauthorized Substances Tax Stamps.

Pay the tax due, and then permanently affix the stamps to the unauthorized substance.

No additional tax is due - even if the unauthorized substance is handled or possessed by someone else in the future.

No. Notwithstanding any other provision of law, information obtained pursuant to the unauthorized substances tax law is confidential.  

• It may not be disclosed unless independently obtained. 
• It may not be used in a criminal prosecution other than a violation of the unauthorized substances tax law. 

Revenue employees who divulge information about stamp purchasers to law enforcement shall be guilty of a Class 1 misdemeanor.

Seventy-five percent goes to the state or local law enforcement agency whose investigation led to the assessment. The remaining twenty-five percent is credited to the General Fund.

No. Purchasing stamps only fulfills your civil unauthorized substance tax obligation. 

You are still violating the criminal statues of North Carolina for possession of the drugs.