As New Jersey considers legalizing recreational use of marijuana, Atlantic City is moving to ensure it sees a tax benefit from any sales in the casino resort.
The state’s legislature is considering a bill that would allow recreational sales. A vote could come as early as this week. The bill allows municipalities with cannabis retailers to collect a 3 percent tax and those with cultivators to collect 2 percent tax. Municipalities with marijuana wholesalers would get 1 percent.
The council is considering a resolution that would state that tax revenue generated in Atlantic City from legalized marijuana be “returned directly” to the resort or sent to the state agency that oversees the city’s finances for the sole purpose of property-tax relief, according to the Press of Atlantic City.
Council President Marty Small said the resolution is designed to ensure the state does not ignore the city while collecting taxes in its border’s. He pointed to luxury, room and parking fees that all go directly to the state without being returned to the city.
“For far too long, we’ve been overlooked in getting our fair share,” he told the newspaper.
Small also said the city was shortchanged on sports betting revenue. When sports betting went live in the state, the municipalities where racetracks offering sports books were located were given 1.5 percent of tax revenue. In Atlantic City, that money was directed to the state Casino Reinvestment Development Authority to promote the resort.
In another matter, Casino Reinvestment Development Authority has approved providing $1.5 million to the city for five years to fund community policing initiatives.
The total $7.5 million will allow the Atlantic City Police Department to hire 15 regular police officers to replace veteran officers. The officers will be assigned to city wards while three officers will be assigned to addressing vagrancy and homelessness in the city tourism district, Police Chief Henry White told the Press. The grant will also allow the city to hire 20 seasonal officers to patrol the tourism district.
