This bill establishes a special fund known as the School Aid Contribution Fund within the Department of the Treasury, allowing taxpayers to voluntarily contribute a portion of their New Jersey gross income tax refund to support State aid for public schools. Taxpayers can indicate their contribution on their tax returns, and the funds collected will be used to supplement State school aid beyond what is already appropriated by the Legislature. The bill ensures that any costs incurred by the Division of Taxation for the administration of this fund can be deducted from the receipts collected, 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 money to school districts according to the School Funding Reform Act of 2008. Importantly, the bill stipulates that these appropriated funds cannot be used to replace the amount of State funds allocated for school aid in the previous fiscal year, thereby ensuring that the contributions serve as an additional resource for public education 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.