Atlantic City’s Closed Revel Casino Gets Tax Break

The closed Revel casino in Atlantic City has reached a tax assessment settlement with the city that reduces its assessment to $225 million. Originally, the casino was assessed at $1.15 billion, though that was later cut to $625 million. The casino is in bankruptcy.

Revel Atlantic City has reached a deal with the resort on the closed casino’s 2015 tax assessment reducing it to 5 million.

The casino was assessed at $625 million before the deal and at one time was assessed at $1.15 billion for 2015. The settlement was disclosed in Revel’s bankruptcy proceedings. The casino closed last year.

Documents filed in bankruptcy court show Revel’s most upcoming quarterly tax payment would have been nearly $10 million, but will now be less than $2 million, according to the Associated Press.

The city has yet to strike a municipal tax rate for 2015, but at current rates, that would indicate an annual tax reduction for Revel from $39.52 million to $7.52 million, according to the AP.

The casino is in the process of being sold to Florida developer Glenn Straub for $95.4 million. The sale is due to close by Feb. 7.

For the city, the tax deal marks another major drop in casino taxes as most of the city’s casinos have sought—and usually won—major cuts in their assessed value as casino revenues continually drop in the resort.

The state legislature is considering a plan to allow casinos to make payments in lieu of taxes for 15 years, in return for foregoing their right to file tax appeals.