Thursday, June 12, 2014

With $88M refund to Borgata, A.C. hopes to move on



On the same day that Atlantic City's government learned it would receive $6.8 million in state aid to help balance next year's budget, it also agreed to dole out many times that in a refund to its biggest taxpayer - the Borgata Hotel Casino & Spa.

The resort's top-grossing casino will get back $88.25 million under a settlement it reached late Tuesday with the city on its property taxes - and the refund could grow even larger if the city loses a pending tax appeal against the Borgata.

The Borgata's parent company, Boyd Gaming Corp. of Las Vegas, announced the settlement in a filing with the Securities and Exchange Commission.

The settlement covers tax years 2011 through 2015.

Under this week's settlement, the Borgata will receive the refund for tax years 2011 through 2013 in a lump sum, as well as an estimated tax credit of $17.85 million for tax year 2014. The city also agreed to an unspecified lower assessment on the casino for 2015.

As part of the agreement, the Borgata agreed to give up its right to further contest its assessments for tax years 2011 to 2015. However, the company is still seeking nearly $49 million, plus interest, in refunds for 2009-10. The state Tax Court has ruled in favor of the casino and the city is appealing.

Source: Philly.com

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