TRENTON, N.J. (AP) – A package of bills to help Atlantic City and its struggling casinos and schools could be on Gov. Chris Christie’s desk by the end of the day.
The most important of the five bills would let Atlantic City’s eight casinos make payments in lieu of taxes for 15 years, allowing the gambling halls to know exactly how much they owe instead of facing huge potential increases each year.
Others would create new state education aid just for Atlantic City (but do not say how much); mandate health insurance and retirement benefits for casino workers (without mandating specific amounts of coverage); divert alternative investment taxes the casinos now pay for redevelopment projects to help pay down Atlantic City’s debt; and eliminate the Atlantic City Alliance and use its $30 million annual budget for other, as-yet undetermined ways to help the city.
The bills come at a time of tremendous upheaval in New Jersey’s gambling market. Four of Atlantic City’s 12 casinos shut down last year, and state officials are considering whether to let voters decide as soon as November whether to expand casino gambling to other parts of the state.
The so-called PILOT, or payment in lieu of taxes, bill would let the casinos collectively pay $150 million for the first two years and $120 million annually for 13 years, assuming gambling revenue stays within certain ranges in the city.
Calculations made in December, which the casinos say are still in effect, would grant large tax reductions to billionaire Carl Icahn and Caesars Entertainment.
Two of Caesars’ three Atlantic City casinos are in bankruptcy. The Tropicana, which Icahn owns, and the Trump Taj Mahal, which he is soon to acquire, would pay nearly $19 million less in the first year of the plan. Caesars and Harrah’s would see a nearly $20 million reduction, though Bally’s, which also is owned by Caesars Entertainment, would see a $2.6 million increase in payments. The Borgata would see a $2.7 million reduction.
Lawmakers then amended the bill to provide that any casino asked to pay more than their tax bill would have been will get an equivalent credit on redevelopment taxes they are obligated to pay the state. Without such a credit, casinos including Resorts and the Golden Nugget would have faced steep increases.
The casinos would no longer be able to appeal their tax payments under the PILOT plan, eliminating a vexing financial uncertainty for Atlantic City each year.
They strongly support the PILOT bill, and oppose the bill requiring them by law to pay employee benefits.
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Wayne Parry can be reached at http://twitter.com/WayneParryAC
Copyright 2015 The Associated Press.
