Perdue: 'Tax The Heck' Out of Sweepstakes Business | Eastern North Carolina Now

   Publisher's note: The author of this fine report is Barry Smith, who is a contributor for the Carolina Journal, John Hood Publisher.

Idea to boost school funding unlikely to see action in short session

    Gov. Bev Perdue called Thursday for the General Assembly to emulate cities that have taxed and regulated sweepstakes operators heavily.

    RALEIGH     Gov. Bev Perdue wants to "tax the heck" out of sweepstakes business across North Carolina as a means of providing more funding for education.

    "I will never turn my back on the kids of North Carolina," Perdue, a Democrat, said during a hastily called press conference on the south side of the state Capitol Thursday morning.

    Perdue was critical of the GOP-controlled House's budget that did not adopt a sales tax increase that she had recommended. She had proposed that revenues from the tax increase go to increase education budgets.

    "You've heard the horror stories all year," Perdue said, listing things such as teachers and teachers assistants losing their jobs and teachers having bake sales to put school supplies in their classroom.

    "I'm doing anything that I can do to help the kids of North Carolina," Perdue said.

    She said that the House decided not to fund what she called "Option One," which included the tax increase in her proposed budget. So she suggested a tax on sweepstakes games as Option Two.

    While Perdue said she didn't like the sweepstakes business in the state, as long as sweepstakes continue to operate in North Carolina, the state should do what many local governments have decided to do and "regulate them hard and tax the heck out of them."

    The N.C. Court of Appeals has ruled the state's 2010 law banning online sweepstakes games unconstitutional. It is currently on appeal to the N.C. Supreme Court.

    Action on Perdue's proposal in the General Assembly isn't likely to occur this year.

    "Sen. Berger believes we need to hear the [Supreme] Court's opinion on this before we consider any action," said Amy Auth, an aide to Senate President Pro Tem Phil Berger, R-Rockingham.

    Legislative leaders are hoping to adjourn later this month, well before the state's high court would decide the issue.
Perdue had few details about how the sweepstakes businesses would be taxed or regulated, suggesting that it would be up to the General Assembly to decide that.

    A press release issued by Perdue's office suggested that such an initiative could raise $300 million next year, perhaps more, depending on how it's structured.