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, specifically targeting 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, any excess aid beyond the initial $1.455 billion will be allocated based on a formula developed by the Commissioner of Community Affairs, considering factors such as population and property valuation.

Furthermore, the bill includes provisions to ensure that if the state fails to meet its funding obligations, it will forgo collecting certain corporation business taxes from non-utility corporate taxpayers for that tax year. It also stipulates that any aid distributed above the 2002 levels from the new fund must be used exclusively to reduce local property tax levies. 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.