NJ Assemblyman Chris Brown is furious about how BORGATA Casino Resort is assessed for tax purposes. Brown believes it’s a SWEETHEART TAX DEAL for casinos.
Did Borgata Hotel Casino & Spa just win another tax battle?
Days after the state enacted a law that exempts casinos from paying property taxes, Boyd Entertainment sold its 50 percent stake of Borgata to MGM Resorts for $900 million. The May 31 sale — a real-market indicator of the company’s value — suggests it’s worth $1.8 billion. Borgata’s property is currently assessed at $850 million.
The timing of the sale prevents the deal from having any impact on what Borgata pays under the new law. Instead, a three-piece formula using gaming revenue, hotel rooms and property size will determine what each casino pays in lieu of property taxes.
Brown blasted the PILOT for more than a year and argued it should’ve accounted for all revenue streams — not just GGR — including food, drinks and entertainment.
“It’s clear the fair-market value of the Borgata is a billion dollars more than it’s currently being assessed, justifying why I fought party bosses and special interests and proving the point I made two years ago: The PILOT‘s a sweetheart deal for the casinos,” Brown said.
The $900 million deal reflects the business value of the Borgata casino and not just the value of the property.
Still, a tax court judge slashed Borgata’s assessment from $2.2 billion to $880 million in 2013 when he ruled the assessments failed to reflect the contraction of the Atlantic City gambling market.