New Jersey to offer tax break to struggling Atlantic City casinos
News on 3 Dec 2014
News on 3 Dec 2014
It appears that the pleas for tax breaks by struggling Atlantic City land casinos…and especially the Trump Taj Mahal….have been sympathetically received by New Jersey politicians.
On Monday Senate President Stephen Sweeney and Sen. Jim Whelan introduced a proposal that would allow casinos to collectively make fixed payments of $150 million in lieu of taxes for two years…an effective reduction in the taxes the operators are currently paying.
The politicians justify the deal by suggesting that it will allow more efficient budget planning by the state and the city, and do away with expensive and time-consuming taxation appeal litigation.
The management at the Taj Trump Mahal, which has been particularly insistent on the need for tax breaks in order to stay open (see previous reports) remained non-committal on the tax proposal, adopting a wait-and-see posture.
The Taj remains the subject of dispute between principal creditor Carl Icahn and the unions, a situation which has led to threats to shut down the casino this (December) month if the unions do not pull back from their demands regarding health and retirement benefits for their members.
