This bill proposes the establishment of the "Municipal Property Tax Relief Aid Fund," which will replace the existing Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid programs. Starting July 1, 2025, the new 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, specifically targeting public utilities and telecommunications. The bill mandates that municipalities will 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, the bill outlines that for State fiscal year 2026, the fund will be credited with $1,455,000,000, adjusted annually based on an index rate. It also includes provisions for municipalities to utilize any excess aid for reducing local property tax levies. If state appropriations are not met, the bill stipulates that the state will forgo certain corporation business tax revenues from non-public utility taxpayers. Furthermore, if 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 distribution to municipalities as additional aid. The bill repeals previous laws related to the Energy Tax Receipts Property Tax Relief Aid, effectively transitioning to the new funding structure.