Is the controversial Atlantic City PILOT bill, written by casino-connected execs, constitutional? A growing throng of Jersey taxpayers, lead by attorney Seth Grossman of Somers Point, say ‘hell no’.
A superior judge will consider that issue later this summer. Should state law allow the Atlantic City casinos make fixed ‘payments in lieu of taxes’ (PILOT) ?
Grossman runs Liberty and Prosperity, a constitutional advocacy group. Seth wants to block the PILOT law, which provides a super-sweet deal to the 7 AC casinos. Because of the PILOT, they only have to collectively pay a share of $120 million each year in taxes. In return, the casinos promise to forgive some property tax over-assessments of the past.
Of course, the recent MGM / Borgata deal proved that the #1 marina district casino was actually assessed properly / accurately.
Grossman is furious about the special tax breaks for AC’s seven casinos at the expense of all other Atlantic County taxpayers.
It should be noted, that the PILOT bill does NOT track non-gaming revenue, the fastest growing portion of the casino industry.
The one-sided PILOT also allows casinos to pay LESS taxes if or when their gaming revenue slips. And don’t forget, NJ takes 100% of the AC Luxury tax: Room and Parking. That’s about $90mil each year that gets sucked out of the Atlantic City economy.
More from Seth Grossman:
Two months ago, Republican leaders in Congress, including South Jersey Congressman Frank LoBiondo, met in secret and tried to ram though an Obamacare replacement that was just as bad as Obamacare.
They were stopped only by the determined opposition of some three dozen conservative Congress members known as “The Freedom Caucus”.
Then it looked like no repeal of Obamacare was possible.
Read More Grossman