New Jersey § 52:27bbbb-20

§ 52:27bbbb-20.

a. As used in P.L.2016, c. 5 ( C.52:27BBBB-18 et al.): “ Atlantic City ” means the City of Atlantic City, in Atlantic County; “ Base amount ” means , for calendar years 2018 through 2021, the amount of the payment in lieu of taxes as determined by subparagraph (d) of paragraph

(3) of subsection c. of this section ; and for calendar years 2022 through 2026, the amount of the payment in lieu of

taxes as determined by subparagraphs (e) through (h) of paragraph (3) of subsection

c. of this section ; “ Casino gaming property ” means one or more parcels of real property located in Atlantic City, and any adjacent

property utilized in connection with such property, upon which there is located a

facility licensed to be used for casino gaming in 2014 or thereafter, whether or not

in actual operation, which has more than 500 guest hotel rooms, and is not subject

to recorded covenants prohibiting casino gaming; “ Clean and Safe Fund ” means the Clean and Safe Fund established pursuant to section 7 of P.L.2021, c. 315 ( C.52:27BBBB-27 ) ; “ Division ” means the Division of Gaming Enforcement in the Department of Law and Public Safety; “ Gross gaming revenue ” (GGR) means the total amount of revenue raised through casino gaming, including

revenue from sports pool operations, from all of the casino gaming properties located

in Atlantic City as determined by the division for calendar years 2014 through 2020. For the purpose of determining the amount of the payment in lieu of taxes pursuant

to this section, gross gaming revenue shall not include revenue derived from Internet

casino gaming and Internet sports wagering during calendar years 2021 through 2026

as determined by the division ; “ Infrastructure Fund ” means the Infrastructure Fund established pursuant to section 8 of P.L.2021, c. 315 ( C.52:27BBBB-28 ); “ Local Finance Board ” means the Local Finance Board in the Division of Local Government Services in the

Department of Community Affairs; and “ Treasury ” means the Department of the Treasury. b. Beginning with calendar year 2017, and for the next succeeding nine calendar years,

casino gaming properties located in Atlantic City shall be exempt from local property

taxation on real property and improvements, including accessory hotels, conference

centers, parking garages, and other appurtenant facilities, except that any new improvement

developed on a casino gaming property that is made outside of the perimeter footprint

of any improvement existing as of the effective date of this act and any real property,

not formerly qualified as casino gaming property, acquired after such date by an owner

of casino gaming property shall not be exempt from local property taxation in any

calendar year and shall be subject to local property taxation annually at Atlantic

City's general property tax rate. The provisions of this section shall not apply to any casino property that operates

under a small scale casino facility license or a staged casino facility license pursuant

to section 1 of P.L.2010, c. 115 ( C.5:12-80.1 ). c. (1) In exchange for the property tax exemption granted in subsection b. of this

section, each owner of each casino gaming property shall sign a 10-year financial

agreement with Atlantic City for each casino gaming property based upon the provisions of P.L.2016, c. 5 ( C.52:27BBBB-18 et al.) for calendar years 2017 through 2021, which financial agreement shall be

amended and continued to reflect and incorporate the amendatory and supplemental provisions

of P.L.2021, c. 315 (C.52:27BBBB-19.1 et al.) for calendar years 2022 through 2026, promising to make quarterly payments to the city of its allocated portion of the

annual amount of the payment in lieu of taxes as determined by this section. The continuation of the agreement for calendar years 2022 through 2026 is also provided

in exchange for the prescribed uses of excess amounts of a casino gaming property's

investment alternative tax, as described in subsection b. of section 9 of P.L.2016, c. 5 ( C.52:27BBBB-25 ). The owner of each casino gaming property shall be responsible for the payments allocated

to that property and shall be subject to the lien provisions of R.S.54:5-6 and the interest for delinquency provisions of R.S.54:4-67 if those payments are not made. (2) Any new owner of a casino gaming property following the effective date of P.L.2016, c. 5 ( C.52:27BBBB-18 et al.) shall immediately become responsible for signing the financial agreement with Atlantic City promising to make payments consistent with

this section. (3)(a) The total amount of the payment in lieu of property taxes owed to Atlantic

City for calendar year 2017 shall be $120 million. To the extent that any owner of a casino gaming property has paid property taxes

for calendar year 2017 prior to the date P.L.2016, c. 5 ( C.52:27BBBB-18 et al.) becomes operative, the amount of property taxes so paid shall be credited

toward that owner's allocated share of the $120 million total payment in lieu of property

taxes. (b) For calendar years 2018 , 2019, 2020, and 2021, the amount of the payment in lieu of property taxes owed to Atlantic City shall increase

by two percent per year in every year in which there is no upward adjustment to the

base amount of the payment in lieu of taxes from the previous calendar year as determined

by subparagraph (d) of this paragraph. (c) For calendar years 2018 , 2019, 2020, and 2021, the total amount of the payment in lieu of property taxes owed to Atlantic City shall

be the base amount as determined by subparagraph (d) of this paragraph and the total

amount of the annual increases to date as determined by subparagraph (b) of this paragraph. (d) For calendar years 2018 , 2019, 2020, and 2021, the base amount of the payment in lieu of taxes shall be determined as follows: If the amount of the GGR in the preceding calendar year is between $3.4 billion and

$3.8 billion, the base amount shall be $165 million, or in the case of an upward adjustment,

$15 million more than the PILOT in the previous year, whichever is greater; If the amount of the GGR in the preceding calendar year is between $3.0 billion and

$3.4 billion, the base amount shall be $150 million, or in the case of an upward adjustment,

$20 million more than the PILOT in the previous year, whichever is greater; If the amount of the GGR in the preceding calendar year is between $2.6 billion and

$3.0 billion, the base amount shall be $130 million, or in the case of an upward adjustment,

$10 million more than the PILOT in the previous year, whichever is greater; If the amount of the GGR in the preceding calendar year is between $2.2 billion and

$2.6 billion, the base amount shall be $120 million, or in the case of an upward adjustment,

$10 million more than the PILOT in the previous year, whichever is greater; If the amount of the GGR in the preceding calendar year is between $1.8 billion and

$2.2 billion and the aggregate gross revenues from all of the casino gaming properties

located in Atlantic City from all revenue streams, excluding GGR, have not increased

compared to the prior calendar year by more than the amount by which GGR is less than

$2.2 billion, as determined by the division, the base amount shall be $110 million,

or in the case of an upward adjustment, $20 million more than the PILOT in the previous

year, whichever is greater; If the amount of the GGR in the preceding calendar year is $1.8 billion or less and

the aggregate gross revenue from all of the casino gaming properties located in Atlantic

City from all revenue streams, excluding GGR have not increased compared to the prior

calendar year by more than the amount by which GGR is less than $1.8 billion as determined

by the division, the base amount shall be $90 million. (e) The total amount of the payment in lieu of property taxes owed to Atlantic City

for calendar year 2022 shall be $110 million. (f) For calendar years 2023, 2024, 2025, and 2026, in any calendar year in which there

is not an upward or a downward adjustment to the base amount of the payment in lieu

of property taxes owed to Atlantic City pursuant to subparagraph (h) of this paragraph,

the total amount of the payment in lieu of property taxes owed to Atlantic City for

the calendar year shall increase by two percent from the preceding year. (g) For calendar years 2023, 2024, 2025, and 2026, the total amount of the payment

in lieu of property taxes owed to Atlantic City shall be the base amount as determined

by subparagraph (h) of this paragraph and the total amount of the annual increases

to date as determined by subparagraph (f) of this paragraph. (h) For calendar years 2023, 2024, 2025, and 2026, the base amount of the payment

in lieu of taxes (PILOT) shall be determined as follows: If the amount of the GGR in the preceding calendar year is less than $2.3 billion,

the base amount shall be $100 million, or in the case of a downward adjustment, $10

million less than the PILOT in the previous year, whichever amount is greater; If the amount of the GGR in the preceding calendar year is between $2.3 billion and

$2.9 billion, the base amount shall be $110 million, or in the case of an upward adjustment,

$10 million more than the PILOT in the previous year and in the case of a downward

adjustment, $10 million less than the PILOT in the previous year, whichever amount

is greater; and If the amount of the GGR in the preceding calendar year is greater than $2.9 billion,

the base amount shall be $120 million, or in the case of an upward adjustment, $10

million more than the PILOT in the previous year, whichever amount is greater. (4) The amount of the payment in lieu of property taxes owed pursuant to this subsection

shall be calculated annually each calendar year for each casino gaming property using

a formula implemented by the Local Finance Board, in consultation with the division,

using the following criteria: The geographic footprint of the real property, expressed in acres, owned by each casino

gaming property; The number of hotel guest rooms in each casino gaming property; and The gross gaming revenue of the casino in each casino gaming property from the prior

calendar year. Each of these three criteria shall bear equal weight in the formula implemented by

the Local Finance Board, in consultation with the division, pursuant to this paragraph . (5) If the formula set forth in paragraph (4) of this subsection results in any individual casino gaming property being allocated an amount that is

in excess of the total real property taxes due and payable by the casino gaming property

in calendar year 2015, then , in calendar years 2017, 2018, 2019, 2020, and 2021, that casino gaming property shall receive a credit against the obligation of the

operator of that property under paragraph (2) of subsection a. of section 3 of P.L.1984,

c. 218 ( C.5:12-144.1 ) in the amount of such excess. If, after that credit against the obligation of the operator of that property under

paragraph (2) of subsection a. of section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ), that casino gaming property would still be liable for a payment in lieu of property

taxes in excess of the total real property taxes due and payable by the casino gaming

property in calendar year 2015, the casino gaming property shall not be required to

make any additional payment in lieu of property tax payment. Instead, any additional amount that would have been owed by that casino gaming property

shall be added, by proportional share, to the payment in lieu of property taxes to

be paid by every other casino gaming property in order to provide Atlantic City the

total amount of the payment in lieu of property taxes due and owing for that calendar

year , provided that no individual casino gaming property shall be allocated an amount

that is less than the total real property taxes due and payable by the casino gaming

property in calendar year 2015 . (6) Beginning in calendar year 2022, an individual casino gaming property shall no

longer be allowed a credit against the obligation of the operator of that property

under paragraph (2) of subsection a. of section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ) in the amount that the payment in lieu of property taxes owed is in excess of the

total real property taxes due and payable by the casino gaming property in calendar

year 2015, as allowed under paragraph (5) of this subsection for calendar years 2017,

2018, 2019, 2020, and 2021; provided, however, any increase in the net liability

of an individual casino gaming property resulting from the elimination of the credit

allowed under paragraph (5) of this subsection shall not exceed: 25 percent for calendar

year 2022; 50 percent for calendar year 2023; and 75 percent for calendar year 2024. Any amount that would be owed by a casino gaming property in excess of the limits

applied for calendar years 2022 through 2024 under this paragraph shall be added,

by proportional share, and pursuant to the methodology developed by the division,

to the payment in lieu of property taxes to be paid by every other casino gaming property. (7) Notwithstanding the provisions of paragraph (6) of this subsection to the contrary,

for an individual casino gaming property with less than 1,000 rooms, the increased

net liability of such individual casino gaming property resulting from the elimination

of the credit allowed under paragraph (5) of this subsection shall not exceed 50 percent

between calendar years 2022 and 2026 with that 50 percent increase phased in at 25

percent for calendar year 2022, 50 percent for calendar year 2023, and 75 percent

for calendar year 2024. Any amount that would be owed to such individual casino gaming property in excess

of the limits applied for calendar years 2022 through 2026 under this paragraph shall

be credited against the obligation of the operator of the property under paragraph

(2) of subsection a. of section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ). (8) If the formula set forth in paragraph (4) of this subsection results in any individual

casino gaming property not receiving the lower payment that is due that casino gaming

property shall still be liable for its proportional share of the payment in lieu of

property taxes determined pursuant to paragraph (6) of this subsection; provided,

however, if the liability of the casino gaming property determined pursuant to the

formula set forth in paragraph (4) of this subsection does not result in 50 percent

of the savings due for 2022, 75 percent of the savings due for 2023, or 100 percent

of the savings due for 2024, 2025, and 2026, that property shall be allowed a credit

against the obligation of the operator of that property under paragraph (2) of subsection

a. of section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ) in an amount that will result in the savings of the individual casino gaming property

equaling 50 percent for 2022, 75 percent for 2023, and 100 percent for 2024, 2025,

and 2026. The total credits allowed against the obligation of the operator of a casino gaming

property under paragraph (2) of subsection a. of section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ) for all casino gaming properties in this category shall be distributed on a pro

rata basis based upon the calculated payment in lieu of property taxes payment obligation. (9) Notwithstanding the provisions of paragraph (6) of this subsection to the contrary,

for an individual casino gaming property with more than 1,000 rooms, the increased

net liability of such individual casino gaming property resulting from the elimination

of the credit allowed under paragraph (5) of this subsection shall be no more than

90 percent, which shall be achieved by providing a credit against the obligation of

the operator of a casino gaming property under paragraph (2) of subsection a. of section

3 of P.L.1984, c. 218 ( C.5:12-144.1 ) equivalent to 65 percent of the dollar value increase in that property's payment

in lieu of property tax obligation each year, or such percentage in any year that

limits the increase to 90 percent. (10) The calculations in paragraphs (6) through (9) of this subsection shall be performed

before the application of the two percent annual increase required under subparagraph

(f) of paragraph (3) of this subsection. Thus, the final payment in lieu tax obligation and any credit against the obligation

of the operator of a casino gaming property under paragraph (2) of subsection a. of

section 3 of P.L.1984, c. 218 ( C.5:12-144.1 ) shall incorporate the two percent annual increase pursuant to the methodology developed

by the division. d. If a new casino gaming property becomes subject to the provisions of this subsection,

then the new casino gaming property shall enter a financial agreement with Atlantic

City to set its payment in lieu of taxes. A new casino gaming property shall pay its regular and conventional tax obligation

as billed for the remainder of the calendar year in which it first qualifies as a

casino gaming property. If an existing casino gaming property ceases to qualify as a casino gaming property,

then the total amount of the payment in lieu of property taxes owed to Atlantic City

pursuant to subparagraphs (e) through (h) of paragraph (3) of subsection c. of this

section shall be decreased in the calendar year following the year in which the existing

casino gaming property ceases to qualify as a casino gaming property by the payment

in lieu of property taxes allocated to such casino gaming property pursuant to paragraph

(4) of subsection c. of this section in the year in which such casino gaming property

ceases to qualify as a casino gaming property. Any decrease to the total amount of the payment in lieu of taxes owed to Atlantic

City precipitated by a casino gaming property no longer qualifying as a casino gaming

property shall not take effect until the calendar year following the calendar year

in which such casino gaming property ceases to qualify as a casino gaming property. The payment in lieu of property taxes owed by a casino gaming property pursuant to

this section shall be adjusted in each subsequent calendar year to reflect when any

existing casino gaming properties no longer qualify as casino gaming properties . e. The provisions of R.S.54:5-6 shall apply to any amount required to be paid under this section, and the municipality

shall have the same rights against any casino gaming property for such unpaid amounts

relating to that property as if such amounts were unpaid property taxes.