New Jersey agreed to refund half of tax payments made by Borgata.
US.- Borgata Hotel Casino & Spa, one of the most profitable businesses in Atlantic City, will receive US$72 million of New Jersey’s back-owed total tax refund, which is US$165 million. The tax settlement was decided after an extended dispute between the State’s government and casino’s operators, MGM Resorts International.
Part of the agreement includes Borgata’s drop of pending appeals between 2013 and 2015 as New Jersey’s gaming hub is unable to gather the US$65 million it owes to the company. However, Borgata’s representatives achieved their goal of obtaining the demanded amount set by tax appeals between 2009 and 2015.
“With this agreement we are assured the relative certainty of payment, and the avoidance of additional cost and time related to further litigation,” explained John McManus, Executive Vice President of MGM Resorts. “MGM Resorts and Borgata believe this was the right deal for all parties concerned and is in the best interests of MGM’s shareholders.”
According to the press, the settlement will not further jeopardise Atlantic City’s economic situation, which has faced major decline in the last few years. “The city administration, despite all the time and opportunity given to them, failed to accomplish this goal as they have with so many others,” added New Jersey’s Governor Chris Christie.”This agreement saves US$30 million more for taxpayers than what Atlantic City had anticipated settling for under its five-year plan.”