Atlantic City-based casinos have a few more hours to appeal their tax assessments for the current year. Borgata as well as the other casinos were given until 5 pm, April 1st, to file their petitions.
According to estimates, casinos tax appeals cost the city the sum of $400 million for the last eight years. The aforementioned sum caused financial issues to the region because the most part of the refunds given to casinos could not have been paid off unless the city had borrowed money.
However, not all casinos have the opportunity to get their taxes back. Resorts is a vivid example. Casino executives signed settlement agreements under which they are restricted from filing an appeal for 2015.
Regardless, the filing submitted by Borgata put the beginning of this years’ financial setbacks for Atlantic City.
Tom Ballance, who is taking the position of a president and company’s chief operating officer, commented on the matter and said that Borgata executives were hopeful that this year, it would not be necessary to file a tax appeal.
However, that was unavoidable due to the fact that the so-called PILOT legislation has not come into force yet. In case the legislation had been approved, it would have been a powerful tool for protecting Borgata’s interests.
Last year, Borgata won over $88 million from tax appeals. Last week, casino officials made an attempt for preventing Atlantic City officials from borrowing the sum of $43 million in order to repay the loan it has.
According to the filing, city officials are violating the rule to borrow no more than $140 million for tax refund purposes. Atlantic City authorities were reluctant to provide information, though.
As for the PILOT program, aimed at providing Atlantic City with financial solutions, its main sponsor, Stephen Sweeney, announced that he is still unwilling to post the Casino Property Taxation Stabilization Act, unless Governor Chris Christie supports it.
Proponents of the PILOT program are convinced that it will enhance Atlantic City’s struggling economy and provide the necessary financial certainty.
However, the lack of resolution concerning PILOT made casino executives argue that the tax appeals are still necessary as the gaming revenues are getting weaker and the value of the properties is constantly declining.
Kevin Ortzman, who is taking the position of a president of Caesars Atlantic City, said in a special statement that the current tax system was not working due to the complicated economy situation.
He also added that the Atlantic City Stabilization Act will make it possible for the declining property values and the tax payments to be differentiated from one another. Meanwhile, he proposed the payments to be fixed and pointed to the Act as a means of ensuring the long-awaited economy stabilization.
