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Boyd, Atlantic City reach settlement agreement

Published on NewsOK Modified: June 11, 2014 at 11:42 am •  Published: June 11, 2014

NEW YORK (AP) — Shares of casino operator Boyd Gaming Corp. climbed Wednesday after a subsidiary won a property tax appeal versus Atlantic City, New Jersey, getting a refund of more than $88 million.

Boyd said in a filing with the Securities and Exchange Commission that the settlement resolves part of the tax appeal complaints filed by subsidiary Marina District Development Co. in connection with assessments on certain properties for the 2011 through 2014 tax years.

Marina District was created to develop and run the Borgata Hotel Casino and Spa in Atlantic City.

Boyd said the subsidiary will receive a refund of about $88.3 million for 2011 through 2013. It will also receive an estimated tax credit of approximately $17.9 million for 2014.

Atlantic City also agreed to a defined property tax assessment for certain Marina District properties for the 2015 tax year. Boyd said it believes the revised assessment will result in significantly lower expenses for real estate taxes as compared to 2013.

For its part, Marina District agreed to give up its right to further contest property tax assessments for tax years 2011 through 2015.

The settlement doesn't impact pending appeals of property tax assessments for 2009 and 2010. In those instances, the New Jersey Tax Court found in favor of Marina District, which is estimated to receive property tax refunds of about $48 million, in addition to some interest.

Boyd's stock rose 54 cents, or 4.8 percent, to $11.73 in midday trading.