Atlantic City, N.J. took another financial hit Tuesday when a judge ruled that the Borgata Casino Hotel & Spa can seek refunds for its 2011 through 2014 property tax bills.
Atlantic County Court Judge Julio Mendez ruled that Atlantic City violated an $88.25 million tax settlement agreement with the Borgata when it missed a December 2014 deadline to make the payment. The decision allows the Borgata to pursue a trial on the appeals in Tax Court. He also ordered the city and casino to continue settlement negotiations and regularly report back to the court.
The court ruling against Atlantic City comes as the municipality is in danger of running out of cash. To avoid an April default, the city is instituting a 28-day period starting April 8 to allow time for May tax revenue to arrive. Gov. Chris Christie, who is clashing with Mayor Donald Guardian over support for an Atlantic City relief package, said Monday the city has only $10 million in cash left on hand.
Judge Mendez is also presiding over a case Borgata brought against Atlantic City for $62 million owed in tax refunds in 2009 and 2010. After the city missed a December 2015 payment deadline, Borgata said it would stop making tax payments until it collects the money.
The press office for Mayor Guardian did not immediately respond for comment on the ruling. A Borgata spokeswoman said the casino had no immediate comment.
