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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