Talks held over extending Atlantic City’s PILOT program

New Jersey Senator Vincent Polistina has confirmed that talks have taken place over the potential extension of Atlantic City’s casino payment-in-lieu-of-taxes (PILOT) program.

Talks held over extending Atlantic City’s PILOT program

The scheme replaced traditional property taxes for casinos with a broader assessment of gross gaming revenue. The aim was to reduce the frequency of costly appeals linked to casino property taxes.

Polistina said that conversations had been held in recent months with various groups, including the office of Governor Phil Murphy, with the PILOT initiative due to expire next year.

Political consensus?

Polistina plans to liaise with local officials to ensure there is a political consensus before tabling new legislation.

“As we move forward, we will discuss what we are going to propose with City Council and county commissioners and build consensus this time before we get it passed,” Polistina said, according to Press of Atlantic City.

“I don’t see ever going back to traditional real estate taxes for casinos. You need the PILOT to give certainty. That has to continue in perpetuity.”

According to budget records, the PILOT program generated more than $48.5m for Atlantic City in 2024 and $51.6m in 2023, with the funds injected into public services.

However, Atlantic County officials have claimed for some time that they should be receiving a bigger slice of the income.

Atlantic County Executive Dennis Levinson said: “Everyone agrees casino gaming benefits the whole state. Why should Atlantic County taxpayers be the only ones that have to pay for it?”

Levinson also suggested that existing debts should be cleared before another PILOT program is approved.

“We also now have $14m and counting that is owed to us,” Levinson said. “Before they start a new PILOT, it would be nice if they paid their debts.”

State oversight law review

Meanwhile, Polistina also said that the Municipal Stabilization and Revitalization Act (MSRA) is also under review. This legislation led to the state stepping in to oversee Atlantic City’s finances following a review in 2016. The arrangement was extended by five years in 2021.

“We have to figure out MSRA, the PILOT, CRDA (Casino Reinvestment Development Authority) IATs (Investment Alternative Tax funds),” Polistina said. “They have all been under discussions for months now, so we are not in a situation like we were in before with two months to get things done.”

Mayor Marty Small Sr. added: “If MSRA continues, as long as that partnership continues in the same way it has, and we keep trending in the positive direction we’ve been heading, I would be OK with that. We also look forward to the day all city debt is paid off, as that would be a huge burden lifted off our wonderful taxpayers.”

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