According to this story on WXII's site the Winston-Salem city council is considering a new set of fees for Internet cafes.  From the story:

The city of Winston-Salem could stand to generate more than a $500,000 if City Council members approve new taxes on Internet cafes.

The City Council has proposed a $2,500 license fee and a fee of $500 per machine for the nearly 50 new locations operating inside the city. Currently, the businesses pay no taxes to the city or state.

"We're getting no revenues from these very rapidly growing businesses that are in our communities," Winston-Salem Mayor Allen Joines said. "Our budget is very difficult right now, so any revenue enhancement we can come up with that will not really impact a business, we're trying to look at. We believe these are very lucrative businesses and could easily afford this fee we are proposing." 

I haven't seen the actual proposal so I can't speak to the specifics, but what worries me about this is the definition of "Internet cafe".  If the definition is too loose then here are some of the businesses that could get sucked into this:

• Any business that charges for wi-fi access – for instance Starbucks – could conceivably be charged for each person that pays to access the network.
• Hotels that charge for internet access in rooms, or that provide internet access on computers in their business centers and lobbies.
• Even coffee shops that provide free wi-fi could get hit for $3,000 – $2,500 for the fee and $500 for the computer/router.  They aren't making a dime off the wi-fi, but if the proposal isn't worded correctly they could get hit with the fee regardless.

It sounds to me like the City Council is trying to target a specific type of business (essentially legal gambling parlors), but sometimes when fees or ordinances are adopted to target specific types of businesses then other "innocent" businesses get caught in the crossfire.

I can guarantee you this: if every company that offers free wi-fi learns that it's going to be hit with a $2,500 fee then you can bet your bottom dollar that free wi-fi will disappear in Winston-Salem.  Paid wi-fi might survive, but you'd have to sell a LOT of daily access passes to justify it.  As for hotels that charge $15.95 a night for internet access in your room?  I'd like nothing better than to say "Hit 'em with your best shot!" since that's one of the most annoying business practices in the hospitality sector, but if you do they'll just pass it along as a higher daily rate.

That Winston-Salem is looking for additional sources of revenue is not surprising, and neither is the fact that the targeted industry is a "sin" business, but let's hope the City Council is smart enough not to tax itself.  After all, this is the city that just a few years proudly unveiled its own free wi-fi on Fourth Street.  The description of the free wi-fi service from the city's own website sounds to me suspiciously like what the rest of the world considers an Internet cafe:

Fourth Street Wireless Internet access is a free service provided by the City of Winston-Salem. Citizens in restaurants and businesses along Fourth Street can access the Internet through high-speed connections and enjoy browsing the Web, checking and sending e-mail, or chatting through instant messaging services.

Like I said, I just hope the City Council is very careful with this thing.  

One last thought: Can anyone think of other fees that are targeted at specific industries?  I'm sure there are some out there, but my fatigue-fogged mind isn't hitting on any right now.