This bill establishes a voluntary contribution system for taxpayers in New Jersey, allowing them to direct a portion of their gross income tax refund to a newly created School Aid Contribution Fund. Taxpayers can indicate their desired contribution on their tax returns, which will be used to provide additional funding for public schools beyond the amounts appropriated by the Legislature. The bill specifies that any administrative costs incurred by the Division of Taxation for managing these contributions may be deducted from the total receipts, with the net contributions deposited into the School Aid Contribution Fund.

Furthermore, the bill mandates that the Legislature annually appropriates all funds from the School Aid Contribution Fund to the Department of Education, which will distribute the funds to school districts according to the School Funding Reform Act of 2008. Importantly, the bill stipulates that these contributions cannot be used to replace or reduce the amount of State funds allocated for school aid in the previous fiscal year, ensuring that the new contributions serve as a supplement rather than a substitute for existing funding. The act is set to take effect immediately for taxable years beginning on or after January 1 following its enactment.