Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over five years to restore municipal aid reductions; requires additional aid to be subtracted from municipal property tax levy.

This bill would restore approximately $331 million in municipal aid reductions that occurred during fiscal years 2009-2011 by gradually increasing distributions from the Energy Tax Receipts Property Tax Relief Fund over five years. Starting in fiscal year 2017, municipalities would receive incremental increases (20% in 2017, 40% in 2018, 60% in 2019, 80% in 2020, and 100% starting in 2021) to fully restore aid levels from fiscal year 2012. The bill requires municipalities to subtract any additional aid received from their property tax levy when calculating their next year's tax amount. This directly affects all New Jersey municipalities that received aid from these funds, allowing them to lower property tax rates for residents while maintaining their overall aid levels.