Vara v. Sharp

880 S.W.2d 844, 1994 Tex. App. LEXIS 1635, 1994 WL 318066
CourtCourt of Appeals of Texas
DecidedJuly 6, 1994
Docket3-93-466-CV
StatusPublished
Cited by12 cases

This text of 880 S.W.2d 844 (Vara v. Sharp) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vara v. Sharp, 880 S.W.2d 844, 1994 Tex. App. LEXIS 1635, 1994 WL 318066 (Tex. Ct. App. 1994).

Opinion

KIDD, Justice.

The question presented by this appeal is whether evidence obtained from an unconstitutional warrantless search may be used in a civil tax proceeding. Jesus Alberto Vara, appellant, challenges a tax assessed against him under the Controlled Substances Tax Act. Tex.Tax Code Ann. §§ 159.001-.301 (West 1992). The assessment was based on evidence obtained from a warrantless search. *846 Vara filed a refund suit against appellees John Sharp in his capacity as Comptroller of Public Accounts, Attorney General Dan Morales, and former State Treasurer Kay Bailey Hutchinson (collectively “the Comptroller”). Vara alleged that the exclusionary rule prohibited the use of unconstitutionally seized evidence to support the assessment. The district court granted summary judgment for the Comptroller. Vara appeals. We will reverse the judgment of the district court.

BACKGROUND

On October 11, 1990, two officers of the Dallas Police Department conducted a war-rantless search of Vara’s truck and adjacent premises. The search yielded large quantities of marihuana and cash. As a result, criminal proceedings against Vara were initiated in a Dallas district court for possession of marihuana. Vara defended the criminal charges by moving to suppress all evidence seized during the search, alleging that the search was unconstitutional under the Fourth and Fourteenth Amendments of the United States Constitution and article I, section 9 of the Texas Constitution. The district court granted Vara’s motion and ordered the evidence suppressed. Because the state did not appeal the trial court’s ruling, we must assume for purposes of this opinion that the search conducted by the officers was unconstitutional.

At the same time that criminal charges were brought against Vara, the state initiated forfeiture proceedings against the cash seized during the search. However, after Vara’s motion to suppress was granted in the criminal proceeding, the state requested a nonsuit and dismissal of the forfeiture suit. The trial court granted the state’s motion.

At some point during the course of Vara’s criminal prosecution, the Dallas Police Department notified the Comptroller that its officers had found Vara in possession of marihuana lacking the tax certificates required by the Controlled Substances Tax Act. Based on this information, the Comptroller assessed $20,329.64 in unpaid taxes against Vara.

During the administrative hearing in which Vara contested the tax assessment, Vara contended that no evidence existed to support the assessment other than the marihuana seized pursuant to the unconstitutional search. Vara argued that this evidence should be excluded in the administrative proceeding just as it had been in the criminal proceeding. The administrative law judge, however, upheld the assessment, stating that he had no authority to address the constitutional issues raised by Vara.

Vara paid the tax under protest and filed suit for a refund of the tax, 1 again contending that the exclusionary rule prevented the Comptroller from basing its assessment on the evidence obtained from the warrantless search. Both Vara and the Comptroller filed motions for summary judgment; the district court granted that of the Comptroller.

Vara appeals, raising three points of error, all of which rest on his contention that the exclusionary rule prohibits basing the tax assessment on the unconstitutionally obtained evidence, thereby rendering section 159.101(i) of the Controlled Substances Tax Act unconstitutional as applied in this case.

THE CONTROLLED SUBSTANCES TAX ACT

The Controlled Substances Tax Act (hereinafter “the Act”) imposes a weight-based tax on controlled substances possessed by “dealers.” Act § 159.101. 2 The Act defines dealers as anyone possessing either seven grams or more of a controlled substance, or four ounces or more of substances consisting of or containing marihuana. Act § 159.001(3). *847 Upon payment of the tax, dealers are to affix payment certificates to the controlled substance to evidence payment. Act § 159.-102(a).

The Act provides that controlled substances lacking certificates are subject to forfeiture to the state in the same manner as seized property is forfeited under the Alcoholic Beverage Code. Act § 159.205(a). Proceeds from the collection of taxes, penalties, or interest imposed by the Act are deposited in the state’s general revenue fund. Fines collected pursuant to prosecutions under section 159.201(b) of the Act, which makes it a third degree felony to possess controlled substances lacking tax certificates, are “deposited to the credit of the county treasury of the county in which the offense occurred.” Act § 159.801.

This Court has held that the Act “appears to be a tax on its face and operates as a revenue-generating measure.” Jackson v. Sharp, 846 S.W.2d 144, 146 (Tex.App.—Austin 1993, no writ). Still, the Act only taxes individuals who are violating the law. Section 159.103, entitled “Exemption,” reads, “The purchase, acquisition, importation, or production of a taxable substance is exempt from the tax imposed by this chapter if the activity is authorized by law.” Act § 159.-103 (emphasis added). The Act is also subordinate to the underlying criminal proceedings: “The right of the comptroller to collect the tax imposed by this chapter, including applicable penalty and interest, is subordinate to the right of a federal, state, or local law enforcement authority to seize, forfeit, and retain property under ... any ... criminal forfeiture law of this state or of the United States.” Act § 159.205(b). Furthermore, the Comptroller may only settle a tax proceeding under the Act with the permission of the prosecutor of the underlying criminal offense. 3 The prosecutor may also request that the administrative proceedings concerning the tax be deferred, which the Comptroller may do if “in the best interest of the state.” Act § 159.206(b).

Central to this appeal is the constitutionality of section 159.101(i) of the Act, which makes the suppression of evidence in the underlying criminal proceeding irrelevant to tax liability under the Act:

The suppression of evidence on any ground in a criminal case that arises out of the facts on which a determination is made under this chapter or the dismissal of criminal charges in such a case does not affect a determination made under this chapter.

Act § 159.101(i) (emphasis added). Vara contends that this provision is unconstitutional because it allows the Comptroller to use unconstitutionally seized evidence to assess taxes against Texas citizens. Thus, the issue is whether the exclusionary rule applies, thereby rendering section 159.101(i) unconstitutional as applied in this ease.

THE FOURTH AMENDMENT EXCLUSIONARY RULE

History of the Exclusionary Rule

Under the exclusionary rule, unconstitutionally seized evidence may not be admitted in a criminal proceeding. The federal exclusionary rule was first announced in Weeks v. United States,

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Cite This Page — Counsel Stack

Bluebook (online)
880 S.W.2d 844, 1994 Tex. App. LEXIS 1635, 1994 WL 318066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vara-v-sharp-texapp-1994.