Barry Smith - In the Loop

The N.C. Education Lottery won a victory today. The N.C. Court of Appeals, in a 2-1 decision, upheld the act that created the lottery.

One of the major issues has to do with the way the law was passed. Article II Section 23 of the N.C. Constitution requires that certain laws which raise taxes or raise money on the credit of the state be passed over a drawn out period. Such bills have various stages, called readings, in the House and the Senate. Each bill has three readings. In the case of bills raising taxes or raising money on the credit of the state, those three readings must all come on separate days, with roll call votes being required for the second and third readings.

That didn’t occur in either the House or the Senate. The question thus becomes, basically, is a lottery legally a tax? Apparently, the Court of Appeals doesn’t think so.

Since the ruling was a split decision, and not a unanimous one, the losing parties have an automatic right to appeal to the N.C. Supreme Court. Stay tuned.