Atlantic City and County Reach Tax Deal

Atlantic City and Atlantic County reached a deal Wednesday on how much money the county will receive each year from the casinos as part of an economic recovery plan that is crucial for stabilizing the city’s shaky finances.

The intergovernmental agreement between County Executive Dennis Levinson and Mayor Don Guardian removes much of the concern that taxpayers in all of the county’s 23 municipalities would get hit with higher property taxes.

Levinson expressed confidence that most of the municipalities will not face a county tax increase now that the deal has been completed. Those that will are towns that have not yet brought their property assessments up to 100 percent of market valuation, he said.

“The towns farthest away from 100 percent valuation will have an increase,” Levinson said.

The agreement urges Gov. Chris Christie and the Legislature to approve legislation that would require all municipalities to bring their valuations up to 100 percent.

“We note that the county property taxes would be lower in many cases and more equitably shared if all municipalities were at 100 percent valuation,” according to a letter, jointly signed by Levinson and Guardian, that spells out the terms of the agreement.

Before the deal was reached, the county Board of Taxation had warned of the possibility of higher taxes in all municipalities stemming from a proposed PILOT program involving the casinos.

A five-bill economic recovery package pending in the Legislature would replace Atlantic City’s traditional casino property-tax payments. Casinos would make payments in lieu of property taxes amounting to $150 million annually for the first two years and $120 million annually for the next 13 years. Lawmakers said the PILOT payments will ensure a steady and predictable source of funding to help stabilize the city’s declining tax base.

A final vote on the economic package has been delayed in the Senate and Assembly while negotiators worked on the terms of the county’s agreement with Atlantic City. Guardian said he expects the agreement will clear the way for a legislative vote.

“I was very surprised there was concern over it,” the mayor said of the PILOT program. “I’m glad we’re able to spell it out clearly and that everyone at the table will know this will be good for everybody.”

The agreement calls for the county to receive 13.5 percent of the $150 million in PILOT payments the casinos will make in the first two years. Thereafter, the county will receive 13.5 percent of the $120 million in annual casino payments. The percentages are based on the county’s historic share of Atlantic City’s property-tax revenue over the past 13 years.

decline to about $7 billion before it bottoms out.

Entire article at
http://www.pressofatlanticcity.com/news/breaking/atlantic-city-county-reach-deal-on-taxes/article_2f2039b0-9c53-11e4-b6fa-37adc5db58e2.html