Court: Borgata getting a tax refund

THE BORGATA casino will receive about $63 million after a state appeals panel concluded yesterday that Atlantic City had overcharged it on property taxes.

The ruling affirms a $48 million tax refund, and about $15 million in interest for the tax years 2009 and 2010. It is separate from an $88 million tax settlement the casino reached with the city last year for other tax years.

For nearly a decade, Atlantic City has faced a wave of tax appeals as its casinos successfully argue they are not worth what they once were, when the gambling market was doing better. Four of the city's 12 casinos shut down last year and casino revenue has fallen from $5.2 billion in 2006 to $2.74 billion last year.

A bill that would let Atlantic City's casinos make payments in lieu of taxes for 15 years - and not be able to appeal their taxes - has been passed by the state Legislature and awaits a decision by Gov. Chris Christie.

In the meantime, the city continually finds itself with a losing hand. The appeals court ruling yesterday upheld a 2013 tax-court ruling that reduced the Borgata's taxable valuation from $2.2 billion in 2009 and 2010 to $880 million and $870 million for those years.

While expressing relief in the ruling, Borgata president Tom Ballance wishes it was never necessary to begin with.

"We're not really pleased at all," he said. "We would rather the city charge us the correct amount of property taxes in the first place."

Atlantic City Mayor Don Guardian said the appeals are killing the city's finances.