$54M Property Tax Credit Coming to Trump In Atlantic City
Earlier this week, the Atlantic City Council approved a settlement of a property tax challenge by Trump Entertainment which will provide $54 million in property tax credits to the Trump organization for the Trump Taj Mahal, Trump Plaza and the former Trump Marina casino hotel (sold last year and now operating as the Golden Nugget).
This settlement provides the largest credit given to a single casino operator by Atlantic City, and is anticipated to itself reduce the ratable base in the City from approximately $18 billion to $16 billion. According to an article in the Atlantic City Press, the Trump settlement calls for credits resulting from appeals filed against the tax assessments for 2008 through 2012, but will be applied to future tax payments for Trump Taj Mahal over the next five years. The overall valuation is reported to be decreased by about 50%.
This settlement follows the deal made by Caesars Entertainment earlier this year, which received $27M in tax credits. Other casinos still have outstanding tax appeals pending. The burden that these reduced ratables places on the City’s budget has only begun to be felt, with the City authorizing the issuance of bonds earlier this year to pay some of the refunds owing, as we reported here. How the long-term impacts will be felt and addressed remains to be seen.
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