In a major victory for the casino industry in New Jersey, a state appeals court has upheld a controversial tax break that has been heavily debated for the past few years. The tax break, which was first introduced in 2016 as a way to attract more investment in the struggling Atlantic City casino market, has been a source of contention among lawmakers and activists who argue that it unfairly benefits large corporations at the expense of taxpayers.
The ruling, which was handed down by a panel of judges in the New Jersey Appellate Division, confirms the legality of the tax break and affirms the state’s ability to offer incentives to businesses in order to stimulate economic growth. Proponents of the tax break argue that it has successfully incentivized new investment in Atlantic City, leading to the creation of thousands of new jobs and revitalizing the city’s once-declining tourism industry.
The tax break at the center of the controversy allows casinos to make payments in lieu of property taxes, rather than paying the full amount of property taxes owed. This has resulted in millions of dollars in savings for the casino operators, including MGM Resorts International and Caesars Entertainment, who have taken full advantage of the incentive.
Opponents of the tax break, however, argue that it is unfair to taxpayers who are left to pick up the slack when casinos are not paying their fair share of property taxes. They also claim that the tax break has made it more difficult for smaller, independent casinos to compete in the market, as they do not have the financial resources to take advantage of the incentive.
Despite these criticisms, the court’s ruling is seen as a significant win for the casino industry and for Atlantic City as a whole. The decision is expected to encourage more investment in the city’s casinos, which have long been a key driver of economic growth in the region.
In a statement following the court’s ruling, New Jersey Governor Phil Murphy praised the decision, calling it a “vital step forward in our efforts to revitalize Atlantic City and create new opportunities for economic growth.” He also emphasized the importance of supporting the state’s gaming industry, which is a major source of revenue for New Jersey.
While the debate over the tax break is likely to continue in the coming months, for now, the casino industry in New Jersey can celebrate a hard-fought victory in their battle for tax incentives. As the state continues to navigate the economic challenges posed by the ongoing pandemic, the court’s decision offers a glimmer of hope for the future of Atlantic City and the broader New Jersey gaming industry.
