A bill that was supposed to remove the uncertainty over casino tax rates in Atlantic City is now causing a lot of, well, uncertainty over casino tax rates in the resort.
The problem is that the bill which would have casinos pay a set payment in lieu of taxes—called pilot—has not been voted on despite being introduced in December. The bill was designed to stop the continuous tax appeals Atlantic City casinos have been filing—and largely winning—in the last few years.
Now and April 1 deadline for casinos to file this year’s appeals is fast approaching and there is still no sign of movement on the pilot bill.
“Our residents and business owners alike need these bills to be passed,” Atlantic City Mayor Donald Guardian told Philly.com, website of the Philadelphia Inquirer. “I’m confident that everyone involved with the process will see how important they are to Atlantic City’s long-term property-tax stabilization and will pass them.”
The bill was introduced in early December by New Jersey Senate President Stephen Sweeney. Under the bill, the casinos would pay $150 million cumulatively in pilot payments to the city for two years and then $120 million for 13 years.
“What’s the holdup?” Sweeney said to the website. “We have the votes to pass it. The Atlantic County executive and the freeholders are for it. They’re all on board. It’s the administration. They know what the bills are. I’m ready to tee them up now for a vote. But I’m not putting them on Gov. Christie’s desk until I know he will sign them.”
Christie, however, has signaled that he wants an even more extensive plan and is waiting for his management team to make recommendations.
“Unfortunately, all these efforts have not yet created a plan for long-term success in Atlantic City in my view,” Christie told reporters in January. “I say this because all of them assume an investment of extensive state resources without a comprehensive and committed plan leading to long-term fiscal stability for Atlantic City.”
“I truly believe the time is upon us to look at this in a way where we restructure finances, and we work together with all of the interested groups to bring a resolution to the issue that includes not only the municipal government here in Atlantic City but the school system, as well,” Christie said. “If we’re going to achieve that, I believe we need expert and objective leadership in place to take us through that reevaluation process.”
Christie spokesman Kevin Roberts also told Philly.com thee Governor is waiting.
“The governor specifically stated that he was taking implementation of the emergency management team first and, while not ruling out other proposals, is awaiting initial recommendations from them,” Roberts said.
The management team of Kevin Lavin and Kevyn Orr is expected to make their initial recommendations March 24, one week before the filing deadline.
