Court Update on Troubling Atlantic City Casino PILOT Tax Deal

atlantic city PILOT casino tax

Is the Atlantic City Casino PILOT deal, a bad bet for local and county taxpayers? Will Judge Julio Mendez call that sweet, 10 year tax break for Atlantic City casinos… unconstitutional?

Most hope so. The PILOT (payment in lieu of taxes) ignores the NJ Constitution requiring that all tax rules be applied equally to everyone. 

The letter below shows that Judge Mendez is still reviewing complex issues associated with the Casino Pilot motion. Mendez wants all parties to consider mediation again due to the new, local and state leadership soon to be in place.

The latest update from Judge Mendez shows that he wants greater detail about four confusing special taxes related to the PILOT (payment in lieu of taxes). 

  • Impact and interrelation between Casino PILOT, and Atlantic City Alliance.
  • Are ACA future payments connected to PILOT? Payments reduced or increased? By how much?
  • How will opening of Hard Rock & Revel (Ocean Resort Casino) affect Atlantic City and Atlantic County tax base and tax rates?
  • Is there any change to PILOT payments because of additional casinos?
  • What is impact of PILOT upon other revenue sources? What about debt service and bonding?

Answers to these above are due within two weeks (Jan 26). The judge wants feedback on the mediation suggestion within seven days (Jan 19).

Mendez PILOT 1.10.17


  1. As a residential property owner in Atlantic City I honestly think my taxes should be $0.00. In fact,
    I should receive a check from the City every year.

  2. I’m going to guess the editor of AC Primetime owns a house outside of Atlantic City but within Atlantic County. The PILOT legislation is one the city’s most beneficial laws in decades as it lowers property taxes for everybody in AC including casinos and non casino property owners. Atlantic County is suing because they were left out of the extra benefits of the AC property tax bill. Whats interesting is Atlantic County got slightly more funding than than the year before the bill’s enactment. Where there is a lot of money involved, there will be litigation. This is no different.
    BUT the facts are clear, AC is getting long overdue benefit from having casinos in its town. This has never happened since the casinos sprang up in he 70s. Finally! Thats why it looks like a hell hole. all the tax generated went to the state not AC. Is a shame people have to fight against AC being great.

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