TRENTON – The bad tax news continues for Atlantic City.
A tax court decision today favored the Borgata Hotel and Casino properties, resulting in a multimillion-dollar hit to the city already beleaguered by other successful casino tax appeals.
The assessments originally had been set at $2.26 billion for tax years 2009 and 2010, but the casino challenged them.
The tax court decided to set assessments at $880 million and $870 million, respectively, for those years.
The court ruled the casino is due a significant reduction in assessments and mentioned in part the economic downturn of 2007-09 “that threatened lasting adverse impacts.’’
In addition, the tax court recognized the increased competition in other states that undermined Atlantic City’s hold on casino gaming customers.
Earlier this month, Atlantic City received Local Finance Board approval for $55 million related to tax appeals for 2013, most of which is related to casinos fighting their tax assessments.
That request was reduced from $85 million when city officials informed the board that applications for $20 million related to what was then the unsettled appeal involving the Borgata and $10 million related to prior-year appeals was going to be deferred.
Of the $55 million approved early this month, most of it is related to a tax appeal involving the Tropicana resort, the board was told.
The city remains under state supervision, this is the third consecutive year of sizeable tax appeals, and board Chairman Thomas Neff said that once the Borgata case is resolved, it is possible the city could apply to the board for an end to the state supervision.
It was unclear immediately how today’s tax case could affect that.