The administration of Governor Chris Christie officially revealed that it has resolved the remaining tax appeals of Atlantic City casinos. The tax issues that casinos in Atlantic City have been protesting against are considered as the issue that has resulted in exhausting massive financial resources from the gambling resort which has been lately facing certain difficulties.
The state’s Governor shared that the financial future of Atlantic City is no longer threatened by casino property tax appeals thanks to his administration’s efforts.
Back in November 2016, Governor Christie and his administration were given the right to take control of Atlantic City with immediate effect. At that time, New Jersey’s Local Finance Board unanimously approved a five-year state takeover of the local government in the gambling resort, providing the state’s government with the power to take over major functions in ailing Atlantic City.
The decision is to provide state authorities with the right to re-negotiate union contracts, selling AC assets, hiring and firing employees and even overturning city council’s decisions on various matters. Atlantic City has become the first region to be taken over by the New Jersey state since the takeover of Camden that took place fifteen years ago, in 2002.
A large number of local leaders have expressed their disapproval of the state’s takeover in 2016, saying that such a decision would interfere in the powers of AC and could also hurt the civil rights of local residents.
Now, the Governor’s administration revealed that the state of New Jersey finally reached agreements with seven large casinos, including the Golden Nugget, Caesars, Bally’s, Harrah’s, Tropicana, as well as the already closed Trump Taj Mahal and Trump Plaza. The announcement is made about half a year after New Jersey and Borgata Hotel, Casino & Spa reached a deal to settle Atlantic City’s debt to the casino. Under the tax appeal settlement, AC was obliged to pay $72 million of its $165-million debt to the casino.
The financial terms of none of the seven casino settlements were revealed by the Governor’s administration. Still, Christie revealed that the payments are expected to be fully covered by $80-million bond ordinances.
The seven gaming venues had previously filed tax appeals, claiming that they paid more than they owed in taxes. These appeals burdened the Atlantic City gambling resort with serious financial issues to be ironed out. Now, Governor Christie praised the state authorities for reaching the agreements, describing the settlements as the culmination of his administration’s successful efforts to finally resolve one of the most challenging setbacks ever faced by Atlantic City.
The former US senator and state attorney general Jeffrey Chiesa, who was appointed by Governor Christie to oversee the state’s takeover, also commented on the settlements. He shared that Atlantic City has a plan for the debt financing in a responsible manner that corresponds to the gaming resort’s budget.
- Author
Daniel Williams
