This bill establishes the "Municipal Property Tax Relief Aid Fund" to replace the existing Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid programs. Starting July 1, 2025, the fund will receive annual credits from various state tax revenues, including those from the Sales and Use Tax Act and the Corporation Business Tax Act, among others. The bill mandates that municipalities receive at least the same amount of aid they received from the Energy Tax Receipts Property Tax Relief Fund in 2024 or 2025, with a structured distribution schedule throughout the fiscal year. Additionally, any excess aid distributed beyond the initial amount will be allocated based on a formula considering factors such as population, income, and property valuation.

The bill also includes provisions to ensure that if the state fails to meet its funding obligations, it will forgo collecting certain corporation business taxes from non-public utility taxpayers for that tax year. Furthermore, any aid exceeding the amount distributed in 2002 must be used by municipalities to reduce local property tax levies. In years where net payments from specified sources exceed $1.425 billion, 75% of the excess will be credited to the Municipal Property Tax Relief Aid Fund for additional municipal aid. The bill repeals previous laws related to the Energy Tax Receipts Property Tax Relief and is set to take effect immediately, applying to the state fiscal year beginning July 1, 2026.