When New Jersey Democrats proposed a financial plan for Atlantic City that would have them make a set payment in lieu of taxes—rather than constantly challenging municipal tax assessments—the bill seemed on track for quick passage.
That was three months ago. Since then the bill has stalled and has not even come up for a vote, despite bi-partisan support and also support from several Atlantic City politicians and most of the casino industry.
And it’s not clear why.
Under the plan, casinos would not pay property taxes but would instead cumulatively make $150 million in Payments in Lieu of Taxes annually for two years, then $120 million for each of the next 13 years.
Atlantic City has been facing nearly constant casino reassessments and challenges as gaming revenue in the resort has declined. Proponents of the bill say it would give the city needed stability as it grapples with huge budget shortfalls.
But proponents of the bill, including state Senate President Stephen Sweeney plus Atlantic state Sen. Jim Whelan and Assemblyman Vince Mazzeo point to Governor Chris Christie for the delay.
Christie, who has appointed an emergency manager to sort out the city’s finances has been ambiguous about the plan.
“We don’t know where the governor stands on it,” Mazzeo told the Press of Atlantic City, saying voting on the bill would be pointless if Christie plans to veto it.
“But I do believe that these bills will get voted on in the not-too-distant-future,” he said. “It has to get done. We know that.”
The bill had also been opposed by Atlantic City’s Republican Assemblyman Chris Brown who has labeled it “corporate welfare” for casinos. Brown says the bill is a tax break for the casinos while saddling other Atlantic County property owners with a $9 million tax increase.
The county, however, has reached an agreement with the city to receive 13.5 percent of the pilot money to offset its taxes. Brown says he can now vote for the bill because of that agreement.
Originally, the vote was thought to have been delayed by the ongoing bankruptcy battle for control of the Trump Taj Mahal. Billionaire Carl Icahn has been trying to take over the troubled casino, but has asked for, among other things, tax breaks from the city and state.
However, Icahn’s continuing legal fight with the city’s main casino’s workers union over benefits had caused the legislature to back off a vote on the bill until the dispute was settled.
But as that fight also drags on, Christie now seems to be getting most of the blame. The Governor has not publicly commented on the bill.
“Look, we had this thing lined up,” Whelan told the Press. “We need the governor’s support, and if we don’t have any Republican support in the legislature, the governor’s not going to support it.”
