Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Reallocates casino investment alternative tax to Atlantic City to pay debt service on municipal bonds issued.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the allocation of the casino investment alternative tax and supplementing P.L.1977, c.110 (C.5:12-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of section 3 of P.L. 1984, c.218 (C.5:12-144.1) or any other law to the contrary, including subsection k. of section 5 of P.L.2011, c.18 (C.5:12-219), the moneys received by the State Treasurer derived from the payment of the investment alternative tax in the amount specified in paragraph (2) of subsection a. of section 3 of P.L.1984, c.218 (C.5:12-144.1) and the investment alternative in the amount as specified in section 17 of P.L.2013, c.27 (C.5:12-95.19) shall be allocated to the city of Atlantic City for the purposes of paying debt service on bonds issued by Atlantic City prior to the effective date of this section.
2. This act shall take effect immediately and expire 15 years thereafter.
STATEMENT
Current law requires a casino licensee to pay a casino investment alternative tax of 2.5 percent of its gross gaming revenues to the State, or to reinvest 1.25 percent of its gross gaming revenues through the Casino Reinvestment Development Authority in community and economic development projects in Atlantic City or the Tourism District in Atlantic City, as prescribed. This bill would reallocate, for a period of 15 years, the moneys derived for the payment of 1.25 percent of gross gaming revenues to the city of Atlantic City for the purposes of paying debt service on municipal bonds issued by Atlantic City prior to the effective date of this section. It would also reallocate the investment alternative of 2.5 percent of Internet gross gaming revenues for the same purpose.