(A) For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
COMPUTER.
Any electronic machine connected to an internet server, including a computer, used as a game promotion or for amusement subject to the provisions of this section.
INTERNET SWEEPSTAKES CAFÉ/ COMPUTER GAMING ESTABLISHMENT
. Any business enterprise utilizing one or more computers connected to an internet server as game promotions or for amusement. In a game promotion, a person may conduct a game of chance in connection with the sale of consumer products or services and/or for which the elements of chance and prize are present. This term includes, but is not limited to, internet sweepstakes, internet cafés, and cybercafés. This definition only applies where a machine emits, issues, displays, prints out or otherwise records any receipt, paper, coupon, token or other form of record which is capable of being redeemed, exchanged, or repurchased for cash, cash equivalent, prizes, services or any other item of value, whether or not the value of such distribution is determined by electronic games played or by predetermined odds. This includes a system which invites patrons to purchase prepaid internet access cards that also allows them to use computer terminals with gaming software as an ancillary benefit. This term does not include any lottery approved by the State of North Carolina.
(B) The operator of each internet sweepstakes café/computer gaming establishment shall provide to the Tax Collector the serial number of each and every computer in the establishment and shall pay the applicable business license tax thereon prior to any use of the same. Computers that are removed from the establishment shall be reported (with applicable serial number) to the town’s Tax Collector. Any replacement computer (with applicable serial number) shall likewise be reported to the town’s Tax Collector and the applicable business license tax thereon paid prior to any use of the same.
(C) Town tax rate: $1,000 per computer gaming establishment together with $250 for each and every computer at the internet sweepstakes café/computer gaming establishment whether or not the same may be connected to or connectable to the internet either by landline or wireless connection for each fiscal year or any part thereof.
(D) This tax does not apply to any game or process prohibited by G.S. §§ 14-304 through 14-309; provided, however, once the tax is paid, determination that the game or process for which the tax was paid was or is prohibited by G.S. §§ 14-304 through 14-309 shall not entitle the establishment to a refund of the tax paid, and the tax paid shall be forfeited.
(E) Establishments legally operating with appropriate business license at the time of the adoption of this ordinance shall be required to pay the applicable business license tax for internet sweepstakes café/computer gaming establishments for the current fiscal year and shall be required to pay the tax in full for each fiscal year July 1, through June 30 thereafter.
(Ord. passed 5-10-2011)