Atlantic City and Atlantic County have struck a deal on the county’s share of casino taxes under a new casino tax plan for the city.
County officials had worried that a deal on casino taxes—where casinos would pay a fixed payment in lieu of taxes—would cause property taxes to rise for residents of other municipalities in the county.
Atlantic County Executive Dennis Levinson said the deal helps municipalities that have brought their property assessments $100 percent up to date, but that other municipalities should move to do the same.
“We note that the county property taxes would be lower in many cases and more equitably shared if all municipalities were at 100 percent valuation,” according to a letter, jointly signed by Levinson and Atlantic City Mayor Donald Guardian, that spells out the terms of the agreement.
An economic recovery package pending in the state Legislature would allow Atlantic City casinos to make payments in lieu of property taxes amounting to $150 million annually for the first two years and $120 million annually for the next 13 years. The plan sets a steady and predictable source of funding to help stabilize the city’s declining tax base, supporters say.
The agreement gives the county 13.5 percent of the $150 million in PILOT payments the casinos will make in the first two years and 13.5 percent of the $120 million in annual casino payments thereafter.
A vote on the recovery plan has been delayed in the state Legislature due partially to the negotiations between the city and county.
Meanwhile, The Casino Association of New Jersey—a trade group representing the casinos—urged legislators to approve the casino tax plan quickly.
