Murphy approves controversial tax breaks for Atlantic City casinos
On Tuesday, the governor approved an controversial plan to boost tax breaks during the pandemic. It's what advocates say is necessary to protect jobs, but opponents warn that this is a giveaway that will hurt taxpayers.
Murphy signed the bill into law one day after the two houses of the state. He didn't give a statement on why he signed off on the proposal.
The bill is changing a law that allows the casinos of North Carolina to pay regular fees instead of property taxes for the city, Atlantic County and the school district.
In 2016, the original law was passed, a time where the industry was reeling from the closure of casinos. It forbidden casinos from going to court to appeal their taxes, a practice that hurt the citys budget, but gave casinos a clear picture of what they had to pay.
The biggest and fastest growing revenue streams of the industry sports betting and online gaming are excluded from the calculations as to what the casinos pay for the next five years.
The amount of money casinos will pay next year will be reduced by $55 million a year and, in the coming years until 2026, would likely be between $30 million and $165 million, the second largest of those will be partially offset, said a.
In spite of the deterioration in profits from sports and online gaming, the casinos need the measures to protect against a pandemic, as result of the lagging revenue from in-person gambling.
The state-run senator, D-Gloucester who said the measure was the primary sponsor said the new laws would've caused thousands of jobs. Sweeney said that these gambling stories were based on what casinos have told him and to understand the industry.
He said he has helped so much on the bill. "Things have been worsening, haven't you?
The measure is one of the most closely watched bills in the deprivation of the court's sworn-in period for the next state legislature, Jan. 11. Sweeney has also come to the end of a hearing after a storm of rainstorms.
Critics say arguments for the law are suspected because the casino revenue is up overall while the pandemic persists. They also warn the measure will bolster gambling halls on the expense of taxpayers.
The state Division of Gaming Enforcement which said Atlantic Citys casinos, driven by sports betting and online casinos, won $3 billion in the first of the first 11 months of 2021. Thats up nearly 69% from the same period last year and 34% in the first 11 months of 2019.
New Jersey Policy Perspective, a liberal think tank said the law will allow at least $145 million in annual tax breaks despite casinos having a banner bounce-back year in 2021 and despite the original statutory obligation, casinos have special tax treatment for the suffolk.
That winning bet for New Jersey deprives the state and its residents of much needed public investments in schools, roads, services and other buildings of a strong economy, said Peter Chen, an analyst of the group. So in a hurry, the house will lose the house a 'Second and in the house that you wont win again.
Don Guardian warned that taxpayers should pay more so that the casino industry gets a tax break.
With State figures also, online gambling is down 5.5% from 2019 levels. And casino executives complain they don't collect all the revenue from sports betting and games because it must be shared among technology companies and sports book partners.
The casinos Association of New Jersey, which represents the casino halls of Atlantic City last week told lawmakers not passing this measure would 'have a further negative impact on land-based casinos, which are still recovering from this unprecedented pandemic.
The state Senate voted on Monday to approve the bill the minimum of the minimum votes required for passage with the amendment voted at 21-15 on Monday, while the Assembly passed it 36-19.
This is the latest in a series of measures the state government and business have implemented in the past five years to help the beach resort, especially where the state hasn't ceased to open an existing gambling site.
The Associated Press contributed to this report.
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