This bill mandates that fire districts, school districts, and county governments share the financial responsibility for property tax appeal refunds, which was previously only a burden on municipalities and counties. The municipal tax collector is required to notify these entities of their proportional share of the property tax appeal refunds paid during the tax year, which they must incorporate into their annual budgets. In the subsequent year, the tax collector will deduct the relevant shares from the payments due to the county and each school district and fire district.

Additionally, the bill amends existing laws to clarify the definitions of "tax due" for fire districts, counties, and school districts, incorporating the new requirement for these entities to account for their proportionate share of property taxes refunded by the municipality. This change aims to ensure a more equitable distribution of the financial impact of property tax refunds across all taxing districts involved. The bill is set to take effect immediately upon passage.