Bearing in mind the fact that four Atlantic City casinos closed doors last year and another one was on the verge of being shuttered, it is not a surprise that Atlantic County legislators are trying to take due measures in order to stabilize the area’s struggling gambling industry.
As previously reported, a tax plan for the casinos on the territory of Atlantic City was proposed some time ago and it seems that it will finally make it to the Legislature. Yet, Dennis Levinson, an Atlantic County Executive, called for certain alterations to be made.
Under the so-called PILOT plan, or Payment in Lieu of Taxes, casinos in Atlantic City would have to pay $150 million to the city for the following two years. Furthermore, $120 million will need to be paid every year for the next 13 years. As for the county, it would receive a total of 13.5% of the afore-mentioned payments.
Mr. Levinson, however, expressed his concerns that casino values totaling $3.7 billion will be taken off the county’s books. He informed New Jersey Senate President Steve Sweeney about what troubles him and called for a special provision in the proposed bill that would make it clear casino property values would be used for determining the share in local taxes that municipalities would receive.
Mr. Levinson also argued that the removal of casino values from the county’s books will affect the 23 municipalities on the territory of the Atlantic County, Atlantic City included. He claimed that casino values should not be removed from the books or at least, the New Jersey Division of Taxation should permit tax assessments of local casino properties stay in the ratable base.
Senate President Sweeney shared that he will do his best for the bill to be moved to the Legislature before the end of March. Yet, he will not call any vote, unless he gets the necessary approval from Gov. Chris Christie.
At present, several bankruptcy experts are compiling a report on the county’s gambling industry. Senate President Sweeney emphasized that the governor would not take any actions before the report is complete and carefully reviewed by him.
State Sen. Jim Whelan (D-Atlantic) explained that the PILOT plan’s primary goal is for tax rates in Atlantic city to be stabilized. He also suggested that the bill might be voted by the end of the month.
In fact, casinos have up until April 1 to submit their tax appeals. This is why owners consider it important for the bill to be voted and passed into law before the end of this month.
