This bill mandates annual State aid payments to municipalities that have a significant amount of State-owned and county-owned property. Specifically, it targets municipalities with populations not exceeding 30,000, where the combined acreage of such properties is at least 10 percent of the municipality's total land area. The State will provide $500 per acre of eligible land as compensation for municipal services rendered to these properties.

To facilitate this process, the bill requires the assessor of each eligible municipality to submit an annual report to the Director of the Division of Taxation, detailing the total acres of State-owned and county-owned property within the municipality. The director will then calculate the aid amount and notify the municipality by February 1 each year. The State Treasurer is responsible for distributing the approved aid payments by August 1, contingent upon legislative appropriations from the Property Tax Relief Fund. If appropriations fall short, the payments will be proportionally reduced.