Tax legislation is questioned in AC
A constitutional advocacy group filed a lawsuit to stop a casino tax legislation proposal.
US.- A gaming tax legislation, which would reduce the financial obligations casino operators face in Atlantic City, could be blocked by a lawsuit introduced by Liberty and Prosperity, a constitutional advocacy group. The tax measure is considered as “unconstitutional” by the group, as they argued in the lawsuit.
The controversial law, known as PILOT, establishes that Atlantic City casino operators can pay a total of US$120 million per year in order to be exempted of appealing their gaming assessments. ”In the past, tax abatements were given to a handful of blighted properties to encourage redevelopment,” explained Seth Grossman, CEO and attorney of Liberty and Prosperity. “Today, these tax breaks are given to the richest corporations and most luxurious properties in the city.”
As the Press of Atlantic City reported, the city is holding a hearing next July 17 to determine the situation. Superior Court Judge Julio Mendez will be in charge of the meeting, where representatives of both sides will present their arguments. Casino companies and supporters of the block will be able to submit their legal documents until July 6. “Because this applies to county taxes, every business and homeowner in the whole county is also affected,” added Grossman.
The law was originally introduced to boost business development in Atlantic City.
