Two days ago New Jersey authorities announced that the remaining casinos based in Atlantic City will get a tax relief and in addition, a special rescue plan will be applied with the aim of compensating the losses and setbacks the venues have been experiencing for a pretty long time.
The legislative bodies acquainted themselves with the so called rescue plan on Monday. The details it contained were announced on the very next day by Steve Sweeney, the State Senate President, and Sen. James Whelan.
According to the plan, better days are awaiting the eight casino venues, located in Atlantic City. They will be given the chance to save up from taxes. For that purpose, all properties will have to collectively pay $150 million instead of the taxes they are supposed to pay within the next two years.
Then, the amount will be reduced to $120 million provided that the revenue of the casinos does not fall under $2.2 billion per year.
However, if the revenue generated equals to $1.4 billion, the collective taxes will be reduced to $75 million annually.
Casino employees will also benefit from the implementing of the bill as they will be provided with health and retirement benefits.
The plan is believed to be beneficial to the well being of the state in general as it helps for reducing the huge debt Atlantic City owes. The expectations are for paying off between $25 and $30 million per year.
As a matter of fact, the changes suggested are similar to the requests of Taj Mahal officials who wanted the Atlantic City authorities to provide the struggling casino with tax breaks, help managers save it from closure and prevent 3,000 people from losing their jobs.
Understandably, media asked the CEO of Trump Entertainment Resorts Robert Griffin if the changes would help them keep Taj Mahal opened. However, he remained tight lipped and said that time will tell what the fate of the casino will be.
Needless to say, the rescue plan has a lot of advantages. First of all, the annual taxes casinos are supposed to pay will be greatly reduced. Secondly, it enables city authorities make more precise estimates concerning the revenue. Last but not least, the casino tax appeals will be avoided.
Whelan, who also used to be a mayor of Atlantic City, said that the rescue plan will help for solving some of the most complicated issues the city has been dealing with for months.
Steve Sweeney suggested the plan a few months ago in order to remedy the situation. The one he proposed bears a strong resemblance to the ploposal approved by the Governor a few days ago.
Chris Christie has approved of a survey, intended to suggest alternatives for avoiding further downfall.
Christie’s spokesman announced that the Governor supports Sweeney’s plan.
