Internet Cafes Topple N.C. Town's 59,000% Tax

[The Straight Story]

Internet Cafes Topple N.C. Town's 59,000% Tax

(CN) - A North Carolina town is not allowed to hike taxes for Internet cafes by a whopping 59,900 percent, the state Supreme Court ruled.

Businesses that run promotional sweepstakes in Lumberton, N.C., once paid a privilege license tax of $12.50 per year, but the town hiked that amount in 2010 to $7,500 - a figure combining a $5,000 charge per location plus $2,500 per computer terminal.

The town's next highest tax, covering privilege uses, is $500 for "circuses, menageries, Wild West and dog and pony shows."
IMT Inc. dba The Internet Business Center led three other businesses in a lawsuit to declare the tax unconstitutional, while the city countered with lawsuits to collect on the taxes.

...

"Because the Just and Equitable Clause (of the state constitution) is a substantive constitutional protection against abuse of the taxing power, we hold that the city of Lumberton's tax increase of at least 59,900 percent exceeds constitutional bounds," Justice Mark Martin wrote for the court.

http://www.courthousenews.com/2013/03/18/55830.htm

[octoberlib]

1. Wild West and dog and pony shows

lol. I wonder how long ago that law was written?

[jmowreader]

2. If anything, the tax is too low

These are not your father's Internet cafes. They are a way to end-run North Carolina's ban on casinos; the cafes have computers set to online video poker or other games of chance, you pay to play them, and cash prizes are awarded. The state has been trying to ban the damn things because they are casinos, but so far the casino owners have found legal loopholes to allow them to stay in business.

Either shut down the Internet cafes or legalize casino gambling.