North Jersey Casinos Could Pay Much More In Taxes Than Those In AC: Report

North Jersey casinos could pay taxes at a much higher rate than their Atlantic City counterparts and potentially generate hundreds of millions of dollars in needed revenues, according to state lawmakers.

The tax rate for new North Jersey casinos could be 40 to 60 percent lawmakers said at a special Assembly committee hearing Monday, according to published reports. The committee met to discuss a referendum that, if approved, would expand casino gambling to North Jersey.

Assemblyman Ralph Caputo, D-Essex, argued for a statewide ballot question on the matter in November, The Record reported. He said that the only way to help Atlantic City would be to send $200 million a year in tax revenues from two North Jersey casinos, the report said.

Currently, only casinos are only allowed to operate in Atlantic City, but four of the 12 casinos have closed down in the last two years. Atlantic City casinos pay a tax rate of 9.25 percent.

Officials have debated the issue of a referendum for weeks ever since Governor Christie and Assembly announced in January that an agreement had been reached to bring at least one casino to North Jersey.

Three-fifths of both the state Senate and Assembly would need to approved the referendum resolution for it to be placed on the November ballot. Lawmakers could vote next week on the matter, NJ.com reported.

It is thought that the Assembly resolution will receive the support it needs to pass, The Record reported. The state Senate already voted 33-6 in January on an identical resolution in December, but the matter did not go before the Assembly during the last legislative session. The Senate is expected to approve the resolution again, The Record reported.

The Meadowlands Racetrack in East Rutherford, Jersey City, and the American Dream Meadowlands have all been announced as potential landing spots for casinos. Jersey City’s would be a high-rise building, NJ.com reported.

Proponents have said that putting casinos in North Jersey would also create thousands of jobs and generate billions of dollars for the local economy.