Regulation

Donald Trump paid $5M to settle hefty New Jersey casino tax bill


The Trump Taj Mahal in Atlantic City, New Jersey, is due to close in October 2016 after suffering numerous financial problems. Photo by Jesper Rautell Balle

Republican presidential candidate Donald Trump paid just $5 million to settle a $30 million tax debt from his casinos in New Jersey, The New York Times reports.

Regulators had been trying to get Trump to pay the taxes for years and even accused his organization of filing false reports about the amount of taxes that were paid, the paper reported. But barely a year after Gov. Chris Christie (R) took office, the state settled the dispute for about 17 cents on the dollar.

"You can’t tell whether there’s something problematic, but it’s pretty striking that this one was written down so much," David Skeel, a bankruptcy law professor, told The Times.

Christie is one of Trump's most outspoken supporters and was even considered for the vice presidential spot on the Republican ticket. But he wasn't involved in settling the tax dispute, a spokesperson told the paper. The Trump campaign did not respond to questions about the arrangement.

Trump once operated the Trump Taj Mahal and the Trump Marina Hotel Casino in Atlantic City. The Taj Mahal is due to close in October after suffering numerous financial problems. The Marina Hotel Casino was sold in 2011, before the tax dispute was settled in December of that year.

During an appearance on Capitol Hill in 1993, Trump lashed out at tribes and said they aren't required to pay taxes. At the time, he boasted that Taj Mahal was the largest casino in New Jersey.

"We are paying $2.5 billion worth of tax. The Indians don't have to pay tax. Nobody is more for the Indians than Donald Trump," Trump told the House Subcommittee on Native American Affairs on October 5, 1993.

Read More on the Story:
Trump Casinos’ Tax Debt Was $30 Million. Then Christie Took Office. (The New York Times 8/17)
Striking Taj Mahal workers revisit Icahn's N.Y. office (The Atlantic City Press 8/15)
Trump Taj Mahal's July revenue down while industry up in A.C. (Philadelphia Business Journal 8/15)

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