Atlantic County Secures $15 Million Settlement Over Casino Revenue Taxes

Atlantic County has secured a significant $15 million settlement with the State of New Jersey, a resolution officials describe as essential for addressing long-standing deficiencies in how property tax payments are calculated from local casino revenue. This agreement ensures that the massive influx of casino revenue is more accurately leveraged to support regional infrastructure and public services.

The Background of the Settlement

This settlement concludes a nearly eight-year legal battle stemming from the implementation of the Payment in Lieu of Taxes (PILOT) program initiated in Atlantic City. This program allowed nine casinos to cease traditional property tax payments in favor of payments calculated based on their gross gaming revenue.

The Issue at Hand

Atlantic County Executive Dennis Levinson revealed that the county’s lawsuit challenged a 2016 law that he argued unfairly benefitted the casinos at the expense of local taxpayers. With five casinos closing their doors between 2014 and 2016, the need for a solution became even more pressing.

Benefits of the Settlement

• The settlement provides an immediate $15 million lump sum to Atlantic County from the State of New Jersey.
• Quarterly casino payments will be issued to the county through 2026, ensuring a more consistent revenue stream.
• Levinson estimates that this legal challenge will ultimately yield an additional $59 million over the next few years for the county and its residents.

Levinson’s Statement

Executive Levinson expressed satisfaction with the outcome, emphasizing the importance of standing firm in challenging unfair regulations. The PILOT program was heavily criticized for disproportionately impacting taxpayers across 22 municipalities in Atlantic County.

Resolution and Future Outlook

While this settlement marks a pivotal victory, Levinson calls for caution regarding the future of the PILOT program, expressing his concerns that it could further extend beyond its scheduled expiration in 2026.

Conclusion

The $15 million settlement represents a crucial step for Atlantic County in reclaiming lost revenue from casino properties. With the support of state lawmakers, this settlement will help ensure the fiscal health of the community and aid local taxpayers moving forward.