Opinion ID: 1691466
Heading Depth: 1
Heading Rank: 4

Heading: Elements of Failure to Affix a Drug Tax Stamp.

Text: White argues an element of the offense of failure to affix a drug tax stamp is that the defendant failed to affix stamps within a reasonable time. He bases this argument on the assertion that chapter 453B's reference to affixing the tax stamps immediately means the stamps need not be affixed instantly but rather at some later time. White claims the trial information failed to include this within a reasonable time element and therefore, did not allege a crime under chapter 453B. In considering White's claim, it is necessary to briefly review the statutory scheme of this chapter. Iowa Code section 453B.7 imposes an excise tax on dealers. Iowa Code § 453B.7 (1993). This tax is due and payable immediately upon manufacture, production, acquisition, purchase, or possession by a dealer. Id. § 453B.3 (emphasis added). Section 453B.3 also states the dealer shall not possess, distribute, or offer to sell a taxable substance unless the tax imposed under this chapter has been paid as evidenced by a stamp, label, or other official indicia permanently affixed to the taxable substance. Id. (emphasis added). It also provides that in situations where the stamp has not already been affixed, the dealer shall have the [stamp] permanently affixed on the taxable substance immediately after receiving the taxable substance. Id. (emphasis added). Section 453B.12 sets forth the civil and criminal penalties for any violation of chapter 453B: A dealer who violates this chapter is subject to a penalty equal to the amount of the tax imposed by section 453B.7, in addition to the tax imposed by that section. The dealer shall pay interest on the tax and penalty at the rate in effect under section 421.7, counting each fraction of a month as an entire month, computed from the date of assessment through the date of payment. The penalty and interest shall be collected as part of the tax. In addition to the civil tax penalty and interest imposed by this section, a dealer distributing, offering to sell, or possessing taxable substances without affixing the appropriate stamps, labels, or other official indicia is guilty of a class D felony. Iowa Code § 453B.12 (1993). To determine the elements of an offense, we examine the statute defining it. State v. Welch, 507 N.W.2d 580, 582 (Iowa 1993). Thus, we look to section 453B.12 to identify the elements of failure to affix a drug tax stamp. The essential elements of this offense are (1) the defendant is a dealer, [1] (2) who unlawfully possesses, distributes or offers to sell, (3) a taxable substance, [2] (4) without affixing a stamp, label, or other official indicia evidencing the tax imposed by chapter 453B has been paid. See State v. Gallup, 500 N.W.2d 437, 442 (Iowa 1993). As a listing of these elements illustrates, section 453B.12 does not use the word immediately, nor does the statute give the dealer a grace period after the dealer possesses, distributes, or offers to sell the substance within which to affix the stamp. Nevertheless, White notes section 453B.3 imposes an obligation upon the dealer to pay the tax immediately, and requires a dealer receiving a taxable substance without a tax stamp to affix a stamp immediately after obtaining the substance. He claims the word immediately gives a dealer a reasonable time to pay the tax and affix the stamps after the dealer comes into possession of the substance. In contrast, White points out, section 453B.12 makes the mere possession of a taxable substance without a tax stamp a crime, without considering whether the defendant had a reasonable opportunity to affix the stamp. White claims these differences create a conflict between sections 453B.3 and 453B.12, resulting in an ambiguity in section 453B.12. Because the statute is ambiguous, he argues, we must construe it narrowly, criminalizing only the failure to pay the tax and affix the stamp within a reasonable time after the regulated transaction. See State v. Byers, 456 N.W.2d 917, 919 (Iowa 1990) (Statutes that are penal in nature are to be strictly construed, with any doubt resolved against the State and in favor of the accused.). We conclude there is no conflict between section 453B.3 and section 453B.12 because neither statute gives a dealer time after the prohibited transaction to pay the tax and affix the stamp. We base this conclusion on our interpretation of the word immediately as used in section 453B.3. Ambiguity exists when reasonable minds differ or are uncertain as to the meaning of a statute. Ahitow, 544 N.W.2d at 272. To determine whether reasonable minds disagree, we examine the text and structure of the law as a whole, giving effect to its object and purpose. Id.; American Asbestos Training Ctr., Ltd. v. Eastern Iowa Community College, 463 N.W.2d 56, 58 (Iowa 1990); see also Iowa Code § 4.1(38) (1995) (Words and phrases shall be construed according to the context and the approved usage of the language....). When examining a statutory term, we give words their ordinary meaning, absent any legislative definition or particular meaning in the law. State v. Romeo, 542 N.W.2d 543, 548 (Iowa 1996). The dictionary is an acceptable source for the common meaning of a word. Id. The word immediately is defined as without interval of time: without delay. Webster's Third New Int'l Dictionary 1129 (1993). We cannot find in the ordinary meaning of the word immediately any support for White's argument that it means within a reasonable time. Nor does the context within which this word is used imply a different meaning. Section 453B.3 prohibits a dealer from possessing, distributing or offering to sell a taxable substance unless the drug tax  has been paid as evidenced by [the appropriate] stamp. Iowa Code § 453B.3 (1993) (emphasis added). This language envisions the tax will have been paid prior to the time the dealer engages in one of the listed transactions. Thus, requiring the stamp be affixed without delay is consistent with payment of the tax before possession, distribution or offering to sell. If the dealer has already paid the tax, the dealer will have the necessary stamps to affix them prior to or at the time of the transaction. Additionally, the administrative rules implementing this section support an interpretation that the tax stamps must be affixed instantly. See Iowa Code § 453B.2 (1993) (requiring the director of revenue and finance to adopt a uniform system of providing, affixing, and displaying official stamps, labels, or other official indicia for taxable substances). These rules authorize the sale of stamps to members of the public, note that stamps are valid for six months from the date of issuance, provide that persons purchasing stamps need not identify themselves, and prohibit any person in the department of revenue and finance from revealing information obtained from a stamp purchaser in a criminal proceeding except in a proceeding involving taxes due under chapter 453B. Iowa Admin.Code r. 701-91.2 (1991). Additionally, a purchaser of stamps may receive a refund for any unused stamps for up to thirty days after the expiration date indicated on the stamp. Id. r. 701-91.3. Clearly this administrative system contemplates that stamps will be purchased prior to the regulated transaction. Moreover, because tax stamps may be purchased at any time and refunds may be obtained on unused stamps without any fear of reprisal, the need for a window of opportunity to purchase tax stamps and affix them after the transaction does not exist. Thus, it is not impossible to comply with the statute if it is interpreted to require that the tax stamps be affixed at the very time of acquisition. See White v. State, 900 P.2d 982, 988 (Okla.Crim.App.1995) (rejecting impossibility argument); Hyatt v. State Dep't of Revenue, 597 So.2d 716, 719 (Ala.Civ.App.1992) (finding impossibility argument spurious). Finally, the instantaneous definition of immediately is also supported by analogous statutes and rules: where the legislature wishes to grant a grace period for obtaining tax stamps, it has explicitly provided such a period. For example, both the Iowa Code and the Iowa Administrative Code state that every package of cigarettes must be stamped within forty-eight hours. See Iowa Code § 453A.10 (1995); Iowa Admin.Code r. 701-82.8 (1994). White also claims our decision in State v. Ryan, 501 N.W.2d 516 (Iowa 1993), supports his interpretation. In Ryan, we said section 453B.3 requires the stamp be affixed to the taxable substance at the time of possession or immediately thereafter. Ryan, 501 N.W.2d at 518. This statement was based in part on the dealer's obligation under section 453B.3 to affix a stamp immediately after receiving a taxable substance if a stamp has not previously been affixed. Our statement in Ryan and our holding here are not inconsistent. Ryan simply recognized that a dealer cannot put a stamp on a taxable substance until the dealer receives the substance; hence, the obligation is imposed after receipt of the substance. Section 453B.3 does not state that affixing the tax stamp anytime after receipt is sufficient; to the contrary, the stamp must be affixed immediately after receipt. In summary, the word immediately as used in section 453B.3 means without delay. Consequently, sections 453B.3 and 453B.12 are not inconsistent: both require that tax stamps be affixed to the taxable substance prior to or at the time of the transaction. No grace period or window of opportunity is provided to allow the payment of tax and affixation of the tax stamp within a reasonable time following the transaction. Therefore, the trial information properly alleged the crime of failure to affix a tax stamp even though it did not include the word immediately.