Owed $170M by AC, Borgata skipping $7.2M tax payment

Atlantic City’s most successful casino is sitting on its checkbook as part of a multi-million dollar tax showdown.

The Borgata is refusing to make a $7.2 million tax payment due Wednesday.

The casino is owed more than $170 million in tax appeals it has won from Atlantic City, and which they city says it cannot pay.

Last week, a judge allowed the Borgata to stop making tax payments while both sides explore a settlement.

The court says the Borgata can refuse to make tax payments until the city hands over $62.5 million in payments for tax years 2009-10.

Mayor Don Guardian says the city is in danger of running out of money and declaring bankruptcy.