Court upholds Atlantic City $65M tax refund debt to Borgata

A judge says Atlantic City must pay $62.5 million in tax refunds to the Borgata casino.

Superior Court Judge Julio Mendez on Friday granted a motion to the casino declaring that the city owes it that amount for tax years 2009-10.

But the judge barred the casino from moving to seize city assets to collect the judgment for at least 45 days so that settlement talks can occur.

The Borgata can, however, stop making its current tax payments while the case remains unresolved.

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Atlantic City owes the Borgata more than $160 million in tax refunds from 2009 to 2014. It is money the city says it doesn’t have and can’t afford to pay.

Mayor Don Guardian has said the debt could force the city into bankruptcy.

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