9 hours Ago
Facebook Twitter WhatsApp SMS Email Print Copy article link Save ATLANTIC CITY — The casino payment-in-lieu-of-taxes program is set to expire next year, and state lawmakers and stakeholders are in talks to extend it. State Sen. Vince Polistina, R-Atlantic, said talks have begun with members of the governor’s administration about a new PILOT bill, and he will soon talk to county and city officials about it.
“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 of a new PILOT agreement. “We started these discussions two to three months ago.” Since 2016, each casino has paid a share of an industry-wide assessment based on gross gaming revenue, not property taxes.
That money is distributed to Atlantic City, its school district and Atlantic County to fund operations. ACIT teacher reassigned after reading racial slur to students Atlantic City casinos to light up yellow for Stockton Holocaust remembrance campaign ACIT withholds raise from teacher over reading text using racial slur without context NJ takes over supervision of former Atlantic Club; developer confident project will move forward 23-year-old killed when concrete slab falls on him at Egg Harbor Township condos 6 displaced in Egg Harbor Township fire Atlantic City passes support for Immigrant Trust Act Atlantic Shores vows to push forward with NJ wind farm despite Shell's reported pullout Poll shows New Jersey governor's race is wide open, especially among Democrats Stanley Holmes Village dog dies during second time owner moved to hotel New Jersey drone sightings were approved for FAA research, White House says Indiana man shot dead by police had been pardoned for Jan. 6 Capitol riot My Life: Mason Forte making the most of it after some bad breaks Will proposed Caspian Point development in Atlantic City materialize this time? Vineland's Pacheco overcomes family tragedy to help Chiefs reach another Super Bowl Last year, Atlantic City received more than $48.
5 million in PILOT funding, while in 2023 the city received $51.6 million, according to city budgets. The original PILOT stabilized city finances at a time when bankruptcy was possible, by ending a continual stream of casino property tax appeals.
“I don’t see ever going back to traditional real estate taxes for casinos,” Polistina said. “You need the PILOT to give certainty. That has to continue in perpetuity.
” County Executive Dennis Levinson, a Republican, said no one has contacted the county about a new PILOT law. Levinson’s view is that there should be no new PILOT legislation until the county is paid what it is due under the existing PILOT. This article was produced for ProPublica’s Local Reporting Network in partnership with The P.
.. “We also now have $14 million and counting that is owed to us,” Levinson said.
“Before they start a new PILOT, it would be nice if they paid their debts.” Polistina said discussions about the PILOT extension are in the early stages. County officials have maintained that the PILOT program has underpaid them, and they sued to stop it.
In a 2018 consent agreement reached with the state, the county was to receive 13.5% of PILOT payments through 2024, followed by 12% for the final two years. Since then, the county has argued the consent agreement was violated by a 2021 revision to the PILOT, which deprived only the county of its negotiated share of casino payments to aid the casino industry after the COVID-19 pandemic.
“Everyone agrees casino gaming benefits the whole state,” Levinson said. “Why should Atlantic County taxpayers be the only ones that have to pay for it?” The revised PILOT law in 2021 removed all online betting and online sports betting from the definition of gross gaming revenue, arguing the industry and therefore the city would be harmed without such action. The state cited competition from other states and the effects of the pandemic on the industry as reasons to protect casinos.
The amendments cut the amount casinos had to pay to replace property taxes by about $55 million a year. Polistina said he is also discussing a potential new Municipal Stabilization and Revitalization Act, which governs the state takeover of the city. “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.” IATs are taxes of 1.25% levied on brick-and-mortar gaming revenues and 2.
5% levied on internet gaming revenues. Before the state takeover, those taxes went to CRDA, for reinvestment into Atlantic City to strengthen the state’s tourism economy. This article was produced for ProPublica’s Local Reporting Network in partnership with The P.
.. But under the state takeover legislation, those taxes have been going to helping the city pay down its municipal debt since 2022.
Last year, the city received nearly $68.17 million in IAT funding, according to state records. The current state takeover legislation ends this year.
Mayor Marty Small Sr. said the city and state have a great working relationship and he would expect that to continue if MSRA was extended. “We truly are partners in everything we do.
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.” Mark Giannantonio, president of Resorts Casino Hotel and the Casino Association of New Jersey, did not respond to a request for comment on the possible extension of the PILOT program.
Polistina Get Government & Politics updates in your inbox! Stay up-to-date on the latest in local and national government and political topics with our newsletter. Digital Editor Author facebook Author twitter Author email {{description}} Email notifications are only sent once a day, and only if there are new matching items. Staff Writer Author twitter Author email {{description}} Email notifications are only sent once a day, and only if there are new matching items.
.
