An appeals court in New Jersey has been tasked with deciding the fate of an ongoing battle between the state and the county regarding casino tax revenue. The court is set to rule on whether the state owes Atlantic County millions more in revenue from the city’s gaming industry, according to a local report in The Press of Atlantic City.
The legal battle began early last year after Liberty & Prosperity 1776 Inc., a conservative nonprofit organization, sued the state and claimed that New Jersey’s constitution prohibits preferential tax treatment.
Depending on the outcome, at least $55m in local funding could be divided between Atlantic County and the local school district.
According to the local report, the state won a “temporary reprieve” after being granted a motion for indefinite pay by the Superior Court of New Jersey Appellate Division. The ruling postponed the lower court’s ruling and “effectively preserved the 2021 law that slashed how much Atlantic City casinos pay in lieu of property taxes (Pilot).”
The new program allowed for a $55m reduction in what the gaming industry paid during 2021. Should the court uphold the previous ruling, Atlantic City’s industry would need to return those funds.
Atlantic County Superior Court Judge Michael Blee issued a written response to the state’s claims of “financial peril” in court after throwing out the amended Pilot last August.
He said in a statement: “There is no evidence to suggest casinos could not meet their Pilot obligations under the Original Act.”
Blee also noted that the legislation was advanced “to aid what was actually a resurging industry.”
