NJ sells bonds to cover casino tax appeals
New Jersey sold US$68 million in bonds to fund the tax appeals settlements with Atlantic City casinos.
US.- New Jersey has sold more than US$68 million in bonds in order to fund tax-appeal settlements with seven former and current casinos in Atlantic City. The bonds sold last week hold a 4.1 percent interest rate, and state officials believe that it’s an attractive number.
The agreement covers settlement with Bally’s Atlantic City, Caesars Atlantic City, Golden Nugget Atlantic City, Harrah’s Resort, Tropicana Atlantic City, the former Trump Taj Mahal Casino Resort and the former Trump Plaza Hotel and Casino, as local Press of Atlantic City reported.
Former US Senator Jeffrey S. Chiesa, in charge of Atlantic City’s finances, said: “Atlantic City is now getting excellent access to the bond market, which is amazing for a city that was contemplating bankruptcy before we stepped in to manage its finances.” Moreover, he said that the fact that the city obtained bond insurance and sold the bonds at a low-interest cost means it is well-positioned to responsibly pay down the tax refunds it owes to casinos whilst preserving critical public services.
The bonds sold last week under Jersey’s Municipal Qualified Bond Act program are set to cover the remaining property-tax appeals filed by casinos that Atlantic City faces and two non-casino appeals, which total approximately US$71 million. These are the 2016 cases for Bally’s, Golden Nugget, Caesars and Harrah’s, 2015 and 2016 for Tropicana, 2014 to 2016 for the former Trump Taj Mahal and 2014 to 2017 for the former Trump Plaza.
