Trump Plaza casino owners have hatched a plan to shut the place down for a minimum of 10 years. The reason: to save tax. A deed restriction has been filed by Trump Entertainment Resorts applicable only for the casino. The establishment shut its doors in the September of 2014. Even if it cannot be used as a casino, there is no restriction for opening it to ply another trade.
This business action was executed to sidestep any probable higher taxes, which could be imposed as per a bill introduced under Governor Chris Christie. The bill permits casinos to make their payments in exchange of taxes for a period of 15 years as a part of the rescue plan of Atlantic City. This bill is applicable to any property that was given the license to function as casino in 2014. The casino concerned also should not have any deed restriction.
In the case of Trump Plaza, it operated for about eight and half months in 2014. The company is afraid of being included in alternative tax program. In its filing on Friday, the company wrote to the Delaware bankruptcy court that the Trump Plaza could be forced to make compulsory payments as per PILOT program even as it generates zero revenue and hotel rooms not accepting any guests. It also said that the PILOT program is applied to the casino gaming properties, which are outside of the recorded covenants that prohibit casino gaming.
Officials from Trump Entertainment filed the needed deeds on June 26 with the officials of Atlantic County. The establishment locked its doors on September 16, 2014. It is the last to shut shop among the four casinos ending their runs in 2014. Trump Entertainment has already appealed its taxes for 2014 and 2015. It holds the belief that it may scrounge a better deal via the appeal compared to its participation in PILOT program.
Once PILOT plan comes into force, on the assumption Christie signs the document into law, the Atlantic City casinos will be barred from property tax appeals. In its filing, Trump Entertainment has noted that Caesars Entertainment - a peer company has placed similar deed restriction on its erstwhile Showboat Casino Hotel. The deed restriction filed during that action was sufficient to exclude Showboat out of PILOT program. The figures calculated during December 2014 by surviving casinos do not incorporate Trump Plaza in PILOT program.