The Borgata casino has gone to court hoping to force Atlantic City to pay .5 million in tax refunds.
The city has already missed a deadline to pay the refunds, which were ordered by a state tax court. The Borgata won the refunds by challenging the casino’s tax assessment of the casino for 2009 and 2010.
Atlantic City Mayor Don Guardian told the Associated Press that the city can’t afford to pay the amount in a single payment and that the city could be forced into bankruptcy if it is ordered to do so.
Joe Lupo, the Borgata’s senior vice president, said that including refunds already ordered for other tax years, Atlantic City owes the casino more than $150 million.
“We are simply asserting our rights as a taxpayer to receive a refund of overpayments,” he told The Associated Press. “We are also disappointed that the city is focusing solely on us in its attempt to resolve the situation. Atlantic City has paid refunds to every other casino property except Borgata.”
Guardian said he hopes both sides can clarify the issues and reach a resolution soon.
