LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4494
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 15, 2026
SUMMARY
|
Synopsis: |
Requires all revenue generated by the casino hotel parking fee to be provided to CRDA; expands permitted uses of parking fee revenues by CRDA. |
|
Type of Impact: |
Annual revenue loss to the Casino Revenue Fund. Annual revenue gain to the Casino Reinvestment Development Authority. |
|
Agencies Affected: |
Department of the Treasury; Casino Reinvestment Development Authority. |
|
Office of Legislative Services Estimate |
|||
|
Fiscal Impact |
FY 2026 |
FY 2027 & Thereafter |
|
|
Casino Revenue Fund Loss |
$1.0 million |
$3.1 million |
|
|
CRDA Revenue Gain |
$1.0 million |
$3.1 million |
|
|
CRDA Expenditure Increase |
Indeterminate |
|
|
· The Office of Legislative Services (OLS) estimates that the bill will result in a State revenue loss to the Casino Revenue Fund and a corresponding revenue gain to the Casino Reinvestment Development Authority (CRDA). The CRDA will incur additional expenditures to the extent that it utilizes the additional parking fee revenues to support projects in the City of Atlantic City or for other authorized purposes.
· According to information published by the Division of Gaming Enforcement in the Department of Law and Public Safety, the revenue derived from $0.50 of the casino hotel parking fee generated about $3.1 million annually for the Casino Revenue Fund from FY 2022 through FY 2025.
· Under current law, the CRDA already receives the revenue derived from $2.50 of the casino hotel parking fee. According to the Casino Control Commission, this portion of the fee has generated about $15.0 million annually since FY 2022.
BILL DESCRIPTION
This bill requires the full amount of revenue generated by the casino hotel parking fee to be made available to the CRDA for projects located within the boundaries of the City of Atlantic City.
Current law requires casino licensees to charge and collect a fee of $3.00 per day for the use of a parking space at a casino hotel facility. The revenue derived from $2.50 of the parking fee is deposited into a special fund held by the Department of the Treasury and made available to the CRDA to support eligible public improvements and economic development and redevelopment projects within the corridor region of the City of Atlantic City. The revenue derived from the remaining $0.50 of the parking fee is deposited into the Casino Revenue Fund.
Under the bill, the revenue derived from $0.50 of the casino hotel parking fee currently deposited into the Casino Revenue Fund would instead be deposited into the special fund held by the department and made available for use by the CRDA beginning in FY 2026. Revenue from the casino hotel parking fee would no longer be deposited into the Casino Revenue Fund. The bill also amends current law to provide that casino hotel parking fee revenue deposited into the special fund would be available for use by the CRDA for any projects located within the boundaries of the City of Atlantic City, or for other statutory purposes of the authority, as approved by the CRDA. The CRDA would no longer be required to use the moneys in the special fund for projects located only within the corridor region of Atlantic City.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill will result in an annual State revenue loss to Casino Revenue Fund, and a corresponding revenue gain to the CRDA, of about $1.0 million in FY 2026. Beginning in FY 2027, the bill will result in a State revenue loss, and a corresponding revenue gain to the CRDA, of about $3.1 million. The bill redirects the revenue generated by $0.50 of the casino hotel parking fee from the Casino Revenue Fund to the CRDA. To the extent that the CRDA utilized the additional casino hotel parking fee revenues for projects within the City of Atlantic City or other statutory purposes, the CRDA will experience a concomitant increase in expenditures.
According to the Casino Revenue Fund Taxes and Fees Source Report published by the New Jersey Division of Gaming Enforcement, the casino hotel parking fee generated average revenue of $3.1 million annually for the Casino Revenue Fund from FY 2022 through FY 2025. Using information available through the Casino Control Commission, the OLS estimates that the Casino Revenue Fund has received approximately $1.2 million in casino hotel parking fee revenue from July 2025 through November 2025. At that rate, the casino hotel parking fee would generate about $3.0 million for the Casino Revenue Fund in FY 2026.
The State revenue loss and CRDA revenue increase will be smaller in FY 2026 because the additional parking fee revenue will not be shifted to the CRDA for the entire fiscal year. For purposes of this estimate, the OLS assumes that the bill will be enacted in January 2026 and take effect on March 1, 2026. In this scenario, the State would continue to receive the revenue derived from $0.50 of the casino hotel parking fee for eight months of FY 2026 and the CRDA would receive this revenue for four months of FY 2026.
|
Section: |
Revenue, Finance and Appropriations |
|
Analyst: |
Staff Fiscal and Budget Analyst |
|
Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).