Those two casinos in the northern part of New Jersey could face a tax rate of between 40% and 60%, assuming state legislators get behind the plan.

Monday brought the second of two required public hearings on the New Jersey legislature’s plans to authorize the construction of two casinos in two separate counties in the northern part of the state. The controversial plan would require voter approval to amend the state constitution to permit casinos outside Atlantic City.

Among the hearing’s most notable revelations was Assemblyman Ralph Caputo’s suggestion that the new casinos would pay tax of 40-60% on their gross gambling revenue, a significant premium on the 9.25% effective tax rate paid by AC casinos, but which would dovetail with rates charged across the border in New York and Pennsylvania.

The actual rate facing the new casinos won’t be confirmed until the enabling legislation is released. A maximum of one-third of the sum collected would be funneled towards an as yet unspecified non-profit aimed at boosting AC’s sagging fortunes by promoting non-gaming activity.