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Monday, Oct 21
Tax court slashes Borgata valuation, Boyd and MGM to receive $49M tax refund
- A silver lining to Atlantic City's fall from grace for casino operators: the tax bills are lighter when the going gets tough. Boyd Gaming (BYD -2.3%) and MGM Resorts (MGM +0.4%) won a 61% reduction in past property taxes on the Borgata Hotel and Casino after a tax court in the state reduced the assessed value of the casino to $870M from its $2.26B valuation in 2010.
- The nearly two-thirds slash means Boyd and MGM are owed $48.8M in tax refunds for 2009 and 2010 according to estimates by a local tax attorney. The casino operators also plan to appeal the 2011 and 2012 assessments, while Atlantic City plans to appeal the current decision.
- If upheld, the decision could be a pyrrhic boon to other Atlantic City operators as well.