Just when you thought tax laws could not get any stranger, you can count on lawmakers in the various states to come up with new and unusual methods for raising revenue. Often these taxes are on items plentiful in a particular state where legislators know a small levy will bring in significant income. Others are on merchandise or activities more conservative legislators would like to curtail, such as gambling or sex-related businesses.

Alternative taxes might also involve innovative methods of raising revenue that do not involve the general population or are considered ways of raising the most money from the people who have it. For example, in the early years of Charleston, South Carolina, homeowners were taxed by the width of their front porches. This led to the picturesque homes of the city being built sideways, narrow end to the street, often called “single houses.”

Oddest Taxes

Perhaps the most unusual taxes are those charged on illegal drugs. To date, 23 states impose taxes on illegal substances, such as cocaine or marijuana. Tennessee is the most recent state to enact such a law, but it has been on the books in North Carolina for at least 15 years.

Under these laws, those who possess illegal drugs (which would include illegal liquor or "moonshine") have to report it to the state and receive official "tax stamps" proving it has been registered and the tax paid. While very few have reported this on their own, most have had the tax imposed after being arrested. In North Carolina, the state claims to have raised more than $78 million in revenue from taxes on non-reported illegal drugs.

Flushing A Toilet Tax and Sin Taxes

Less provocative might be the tax in Maryland on flushing toilets. In an effort to raise revenue and to protect the waters of the Chesapeake Bay, the state has imposed a tax of $2.50 per month on sewer bills. Virginia has plans to do the same.

Buying a deck of cards in Alabama will cost an extra 10-cent tax, and the seller also has to pay an annual license fee of $3.

In Utah, patrons of adult businesses that offer "nude or partially nude" performers have to pay an additional 10 percent sales tax. In several states, an admission tax is charged on casino and race track owners, whether or not its patrons actually place a bet.

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