The City of Atlantic Settles Over $80 Million in Casino Appeals
Earlier this year, Carl Icahn who is the owner of Tropicana indicated that he would be appealing against the tax assessments subjected towards Trump Plaza, Trump Taj Mahal, and the Trop.
Billionaire Carl Icahn has been in the middle of numerous tax appealing court cases with the recent one been the case involving the Trump Taj Mahal Casino Resort. In the recent court ruling, the City of Atlantic had to part with an estimated $80 million after Icahn successfully appealed. The ruling which was passed by a state-appointed attorney saw the settlement of various casino-related tax appeals which involved Carl Icahn properties. The entire agreement is said to cover various tax appeals which date as far as the year 2014.
The agreement, in general, settles the tax appeals that were brought forth by Tropicana dating back to 2015 and 2016, the Trump Plaza appeals which date back from 2014-2017, as well as the Taj appeal which dates back from 2014 to 2016. Upon this successful ruling, the City of Atlantic was forced to repay the properties involved as well as withholding all the tax payments.
According to Chris Christie, Jeffrey Chiesa who is in charge of the Atlantic City finances paid a total of $80 million to the casinos. Christie was also quoted as saying that the settlement and agreement reached upon by the administration was a result of addressing one of the most significant yet vexing challenges that the city of Atlantic had faced for a long period of time.
Apart from this, Christie also believes that thanks to the ruling passed, casino tax appeals will no longer be a threat to the city of Atlantic.
According to Chiesa, who also happens to be a former senator of the United States, the Atlantic City was overwhelmed by the millions of dollars of casino tax appeal debts that they had not unraveled upon taking office. Chiesa was quoted as saying that they made it their priority to reach out for favorable agreements with the involved casinos for the benefit of the city and its occupants.
This recent ruling is not the first of its kind that Chiesa has overseen since being elected. His first case came in February after the Atlanta City state overseers reached an agreement estimated to be worth more than $72 million with the Borgata Hotel Casino and Spa. Thanks to the successful tax appeal, the City of Atlantic saved a whopping $93 million.
Under the set tax payments passed after the ruling, each casino in Atlantic City will be required to pay about $120 million a year. Apart from this, the casino properties will no longer have the opportunity to appeal their business and property taxes.
Icahn was the owner of Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino before selling the properties. Currently, he only owns the Tropicana Atlantic City. In March of this year, a group of investors who included Hard Rock International, the Morris Family, and the Jingoli family purchased the Taj Mahal resort from Carl Icahn at an estimated price of $50 million. Under their leadership, they will rebrand and rename the resort to Hard Rock Hotel & Casino Atlantic City. Upon refurbishment, it is believed that the hotel will be opened in the summer.