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 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, depending on their budget cycle. The distribution of funds will occur on a specified schedule, and municipalities will be required to use any excess aid to reduce local property tax levies.

Additionally, the bill includes provisions to ensure that if the state fails to meet its funding obligations, it will forgo collecting certain corporation business tax revenues from non-public utility taxpayers for that tax year. It also stipulates that 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 as additional aid. The bill repeals previous laws related to the Energy Tax Receipts Property Tax Relief and aims to provide a more structured and reliable funding mechanism for municipal property tax relief.