Senate bill lets casinos opt out of PILOT if North Jersey casinos open

The rescue package, the so-called PILOT bill, bars casinos from appealing their property taxes and allows them to make fixed payments in lieu of property taxes for 10 years. The bill passed the Senate by a 34-3 vote on March 14.

But language added to the bill gives casinos the option to withdraw from the financial agreement and become subject to regular property taxation. That would put the city at risk of facing more casino property tax appeals that damaged the city’s finances over the years.

The paragraph allowing this was not in the bill when it was first introduced, but was added after an amendment from the Senate Budget and Appropriations Committee.

Sen. Jim Whelan, D-Atlantic, said the language was added after some casinos made a request to the Governor’s Office. The request went through that office to Senate President Stephen Sweeney, who is the sponsor of the bill, Whelan said.

Coincidently, the Casinos Association of New Jersey issued a press release early Wednesday urging state lawmakers to enact bills to address the city’s financial crisis.

"The inability to enact legislation to address our region’s very unique situation has left city residents, the industry, and the hardworking families that rely on casinos and other city businesses for their livelihood in limbo with no path forward," the statement said.

The Association did not immediately return a request for comment on the added language to the bill.

Proponents of the PILOT bill have said it will stabalize the city's tax base and "stop the bleeding" that has occured from the casinos' successful tax appeals. The city's ratable base has plummeted from more than $20 billion in 2010 to $7.3 billion in 2015.

Whelan, who voted for the bill, conceded that the language would allow casinos to appeal their property taxes if North Jersey casinos ate into their revenue.

“Yes. Absolutely,” Whelan said. “The effort here has been to strike a fair number that is predictable and stable and fair. And fair also includes fair to the taxpayer, which in this case is the casino. And if you have casinos up north, it’s a whole new equation.”

The full statement from the Casino Association is as follows:

"There is agreement among everyone with a stake in Atlantic City’s future that the city’s financial situation is dire. Well over a year ago, state lawmakers stepped in to propose legislation that would have moved the city along the road to fiscal health.

"Politics and inertia have combined to form an impasse and with each day that passes, the situation becomes more grave. The inability to enact legislation to address our region’s very unique situation has left city residents, the industry, and the hardworking families that rely on casinos and other city businesses for their livelihood in limbo with no path forward.

"We once again call on our state’s lawmakers and the administration to move forward with a plan for Atlantic City and end the stalemate that threatens the city’s future. There is still time to salvage a viable solution, but clearly the time to act is now."