Atlantic City hotels would have to pay a tax on rooms under a proposal to prop up the city’s public safety budget.
A bill has been introduced in the New Jersey Assembly by Assembly Speaker Vincent Prieto, who opposed much of the state’s financial takeover of the resort. Hotels and casinos would have to pay $2 a day for occupied rooms for two years.
The bill comes as layoffs are expected in the city’s police and fire departments.
“I was adamant that any state takeover of Atlantic City not involve, among other things, police and firefighter layoffs that would threaten public safety and the city’s efforts to market itself as a safe and family-friendly destination,” Prieto said in a statement. “I will not stand idle and allow police and firefighter layoffs to harm public safety for residents while also hurting the public’s ability to feel confident about visiting the city.”
The bill quickly drew criticism for setting even more taxes on city hotel rooms. City hotels already pay state, luxury, casino, occupancy and promotion taxes and fees.
Meet AC—the city’s convention bureau—previously commissioned a study showing that total taxes in Atlantic City add up to 19 percent on casino rooms and 15 percent on non-casino properties on a room renting for $100. The 19 percent tax share on city casino rooms was higher than hotel rooms in cities such as Philadelphia, Boston and Baltimore, according to a report in the Press of Atlantic City.
