Dave202, this post is dedicated to you and your comment on the “Atlantic City Assemblymen’s Plan:”
Sorry to be so dense, but I don’t know what the “alternative investment tax” is. Is this the CRDA 1.25% tax on gross gaming revenues? If so, there’s not a lot of wiggle room here. The CRDA funding is earmarked for specific projects and areas for the next 20 years. Don’t think pols will give that up easily….
If not, WTF is alternative investment tax?
I want to give big kudos to the District Two Assemblymen (Amodeo and Polistina) staff for pointing me in the right direction to answer your question.
The Casino Reinvestment Development Authority explains the Investment Alternative Tax:
CRDA Project Funding
In addition to other gaming-related taxes, State law gives each casino a choice: pay 2.5% of its gaming revenue to the State, or reinvest 1.25% of its gaming revenues through the CRDA in community and economic development projects in Atlantic City and around the State. Without exception, the casinos have chosen reinvestment.
Under the terms of the reinvestment agreement, each casino is required to pay to the CRDA 1.25% of its annual gaming revenues for 50 years, and the CRDA invests this money in eligible projects in Atlantic City, South Jersey or North Jersey, according to the following chart set by law. By law, the casinos are entitled to a return on their investments through the CRDA.
Each casino’s required investments by years Atlantic City South Jersey North Jersey 1-3 100% – – 4-5 90% 8% 2% 6-10 80% 12% 8% 11-15 50% 28% 22% 16-20 30% 43% 27% 21-25 20% 45% 35% 26-30 65% – 35% 31-35 25% 25% 50% 36-50 – 50% 50%
I encourage you to read the rest of CRDA’s self-explanation. It is apparent how North Jersey Democrats have used their representative superiority in the Legislature to take Casino funds from Atlantic City and bring them further and further away from Atlantic City.
Atlantic City’s Republican Assemblymen have composed a plan to implement a five-year abatement of the Investment Alternative Tax for new casino development.