A package of five bills designed to help Atlantic City’s troubled finances that have languished for months in the New Jersey Legislature finally came up for a vote before the state Assembly and passed easily.
The bills are scheduled to be voted on by the state Senate June 25.
The bills attempt to create a stabile tax base for the resort’s casinos by creating a set payment in lieu of taxes plan. They create a Casino Operator’s PILOT Council for operating city casinos that will collectively make a $120 million payment to the city for the next 15 years as long as total gaming revenues for the casinos stay between $2.2 billion and $2.6 billion. Last year, city casinos brought in $2.7 billion in revenue.
In the meantime, casinos cannot appeal their taxes. Over the last two years, the city has faced numerous tax appeals from casinos—and also seen four casino closures—that have cost the city millions in revenue. The city’s total ratable base lost 65 percent of its value between 2010 and 2015.
According to the state Office of Legislative Services, which evaluates the economic impact of proposed legislation, the city would normally take in $210 million in casino taxes in 2015 without the new program, but $75 million of that would be directed to the Atlantic City school system and $22 million more would go to Atlantic County.
That number also doesn’t take into account casino tax appeals. Five casinos appealed their taxes this year as the legislation was floundering in the statehouse.
Under the plan, Atlantic City schools would receive less in casino tax money, but could get more through new state aid. The schools will already receive $20 million in additional state aid this fiscal year.
The bills also eliminate funding for the Atlantic City Alliance, the marketing group that has promoted the city for the past three years. The alliance’s $30 million budget for the next two years will now go directly to the city.
The bills also divert most of the state Casino Reinvestment Development Authority’s funding to pay down the city’s debt. The Office of Legislative Services calculated the authority would lose about $31 million in 2015. The authority is funded by the city’s casinos.
Officials for the authority have warned that without their traditional casino funding, the authority won’t be able to fund development projects in the state and city—its’ main reason for existing.
If the bills are also approved by the state Senate, they go to Governor Chris Christie for his signature. Christie, however, has not said whether he supports the measures. Christie’s silence on the bills was seen as a main reason for the delay in bringing them up for a vote.
