The number of people employed in Atlantic City declined by 8,000 in the last year. So did the rateable tax base by almost $3 billion. So the property tax bill on people left is going up a wallet-crushing 47 percent. The Assembly Commerce and Economic Development Committee has voted on a bill that would make Atlantic City an Urban Enterprise Zone and cut sales and use taxes in half. Assemblyman Vincent Mazzeo told NJTV News Anchor Mary Alice Williams that as long as the city government and school system also make cuts, the new initiatives should help Atlantic City’s financial situation.
Making Atlantic City an Urban Enterprise Zone would give tax incentives to private businesses to hire city residents, according to Mazzeo. Urban Enterprise Zones have a sales tax of 3.5 percent, compared to the rest of the state, which is at 7 percent.
Mazzeo said the bill is meant to incentivize businesses to invest in Atlantic City and at the same time entice shoppers to come with the reduced sales tax. He said he believes the emergency manager will embrace the idea.
The pilot program offers payment in lieu of taxes for Atlantic City casinos. Mazzeo said the proposal would have the casinos pay $120 million to the city for its budget. “There’s other money involved, but it’s a steady revenue flow of tax dollars to Atlantic City so that they know exactly what the casinos have to pay and the casinos know exactly what they have,” he said. “If you look back, last year the casinos paid $210 million. This year they’re geared to pay $145 million and that’s without tax appeals. So the pilot program stops the tax appeal and we have a steady source for Atlantic City and for that matter Atlantic County.”
Mazzeo said in addition to the pilot program, the Urban Enterprise Zone and the emergency manager, in order to fix Atlantic City’s tax situation the government also has to make cuts. “We have to make sure that they’re on board, which I know the mayor and the council is trying to work together in unison with the emergency manager and with all of us. So if they make their cuts with the government and the school makes their cuts and the legislation gets passed, I think it’s a good way, as the saying goes, to stop the bleeding and we move on to try to get more investments into Atlantic City.”