Caps State use portion of energy tax revenues and ensures balance of such revenues are paid annually as municipal aid.

This bill caps New Jersey's annual retention of energy tax revenues at $403 million - the amount the state "skimmed" in fiscal year 1998 - and requires the remaining revenue to be distributed to municipalities as annual aid. It directly affects all New Jersey municipalities by ensuring they receive their fair share of energy tax collections, which have been increasingly retained by the state in recent years. The bill amends existing law to mandate that any revenue exceeding the $403 million cap be distributed to municipalities in proportion to their prior year distributions from this fund. This policy change aims to provide consistent property tax relief funding to municipalities while preventing the state from unilaterally increasing its share of these revenues.