A settlement between Resorts casino hotel and Atlantic City will save the casino about million in taxes this year and see its tax assessment fall by one third.
Over the next two years the casino’s assessed value will fall from $165 million in 2013 to $120 million this year, and then to $110 million next year, according to the Press of Atlantic City, which obtained the settlement through a public records request.
Under current tax rates, the value reduction would translate to a $1.1 million saving between last year and this year, with an additional $254,000 savings next year. Resorts paid nearly $4.2 million in combined city, school and county property taxes in 2013, according to The Press.
The agreement, however, does not give the casino any reimbursements for past overpayments. In exchange, Resorts has agreed to stop its current tax appeal for 2014.
The agreement also disclosed that Resorts is developing a condominium complex at its Margaritaville development, and that the project will not impact its 2014 or 2015 tax assessments.
The city and Resorts had previously agreed to set the casino’s value at $165 million for 2011, 2012 and 2013, but the city’s casinos have seen a continual decline in revenue as it loses gamblers to competing casinos in other states.
The settlement is one of several the city has been making with its casinos over tax assessments as the city’s fortunes decline. The city is already facing $320 million in obligations for overpaid taxes.
Atlantic City recently settled with Borgata Hotel Casino and Spa this month and agreed to pay $88 million in refunds on taxes paid between 2011 and 2013. The city has one more settlement pending with Caesars Entertainment for assessments of Caesars Atlantic City and Harrah’s Resort.
