NC H1180

Imposes a state license tax of $2,000 annually on video sweepstakes establishments and a $1,000 per-machine annual excise tax on video sweepstakes machines or devices.

Imposes a 4% state tax on gross receipts from video sweepstakes operations, calculated as money received minus prizes awarded to sweepstakes entrants, with quarterly reporting requirements.

Allocates tax proceeds as follows: up to 6% to local law enforcement (4% to county sheriffs on per capita basis, 2% to municipal police on per capita basis), with remaining revenue credited to General Fund for public education.

Authorizes counties and cities to impose additional local taxes: up to $1,000 annual privilege license tax per establishment and up to $500 annual excise tax per machine, with the Secretary collecting and distributing local taxes quarterly.

Requires applicants for state licenses to file bonds or irrevocable letters of credit in amounts ranging from $2,000 to $500,000 based on expected monthly tax liability; effective January 1, 2013.