Atlantic City is close to settling two more casino tax appeals, though details of the settlements were not released.
City officials told the Press of Atlantic City that it is about to settle tax appeal cases with Resorts casino hotel and Caesars Entertainment. The deals are expected to be finalized in the next 30 days.
Atlantic City Revenue and Finance Director Michael P. Stinson told the paper that one deal would close out tax appeals by Resorts’ appeals. Resorts officials confirmed the deal, but did not disclose the terms.
Another settlement would resolve appeals from Caesars Atlantic City and Harrah’s Resort, but again, details of the settlement were not disclosed.
Caesars challenged the city’s $75 million assessment of The Pier at Caesars earlier this year, which results in $2.9 million in taxes.
In 2014, casinos challenged nearly $2 billion worth of Atlantic City assessments, which together result in almost $49.2 million in combined city, school and county taxes.
The city and the Borgata Hotel Casino & Spa have already settled a major portion of those challenges, agreeing to a settlement over five years of the casino’s tax assessment. Borgata will receive $88 million in refunds between 2011 and 2013, a tax credit against current-year taxes, and have agreed in principle to a lower assessment next year, although the exact value will not be recorded until October, the Press reported.
The city continues to appeal the Tax Court’s earlier $48 million award to Borgata for 2009 and 2010 taxes.
The agreements will likely add to the more than $321 million the city owes its casinos for back taxes—more than 120 percent of this year’s $262 million proposed budget. Stinson told the Press that the city plans to go to bond later this year to pay the Borgata settlement.
