Atlantic City analyses bill to draw 'A-list' performances to stalls

A bill designed to boost the state's entertainment profile by drawing big-name acts to Atlantic City with the allure of tax relief has sat dormant since last year.

The state Senate bill would give qualifying "A-list" performers who perform at least four dates in Atlantic City's Tourism District — which includes the Boardwalk, Bader Field and all nine casino properties — gross income tax relief for shows in the city or venues in Camden, Trenton, Newark or Holmdel.

The Atlantic City shows and additional state performances would all have to occur in the same calendar year.

State Sen. Chris Brown, R-Atlantic, sponsored the legislation in 2018. The bill has not yet been referred to committee for hearings.

“Everyone knows when a star performs in Atlantic City, our middle-class families go to work," said Brown. "More hotel rooms are booked, more restaurant seats are reserved and more blackjack tables are filled, providing employees with more hours and more tips, which is why finding creative ways to overcome New Jersey’s high taxes to bring more visitors to our region is important for our local economy.”

The idea to entice more headlining acts to Atlantic City with statewide economic benefits was originally proposed in 2015 by the late Sen. Jim Whelan, D-Atlantic, and Senate Minority Leader Tom Kean, R-Morris, Somerset and Union.

The bipartisan duo reintroduced the bill in 2016. Both times, the bill was referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee, where it passed without opposition but failed to move to the Budget Committee or find the floor for a full chamber vote. A fiscal analysis of the proposal was never conducted due to its lack of movement through Senate committees.

“It will naturally improve New Jersey’s and Atlantic City’s image to be more attractive, widely accessible and entertainment-based, without a costly campaign," said Kean. "Right now, world tours and widely popular entertainment aren’t repeatedly coming to New Jersey’s venues and consistently drawing tourists to our state. There is tremendous value in the ability to consistently draw world-class entertainment here, especially considering widely successful 'A-Lister' residencies in Las Vegas, where there’s no state income tax."

The legislation does not detail what qualifies as an "A-list" performer, but stipulates that the secretary of state would set criteria, including record sales, ticket sales and awards, and a transparent application process would be administered by the director of the Division of Taxation.

Several businesses represented by the Greater Atlantic City Chamber expressed support for the overall premise of enticing more entertainment options in the resort but emphasized that more details were needed.

"It's critical as Atlantic City evolves to diversify that market," said Michael Chait, executive vice president of the regional chamber of commerce. "Having an incentive like this makes us more competitive as a destination to attract those 'A-list' entertainers. ... But we'd love to learn more (about the bill's specifics)."

Rummy Pandit, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, said from a tourism and industry perspective, "any time we can provide incentives to 'A-list' performers to come and perform on multiple occasions would certainly be added motivation for them to consider Atlantic City. Additionally, entertainment options will continue to move the industry towards diversification of offerings and providing a multi-faceted destination experience."