Requires distribution of State aid to certain municipalities located in whole or in part in the Highlands preservation area.

This bill establishes a new state fund to provide property tax relief to municipalities located in New Jersey's Highlands preservation area. Qualified municipalities must either be entirely within the preservation area or have at least 60% of their land in the preservation area while following regional planning standards. The aid amount is calculated based on the decline in true value of vacant land between 2023 (the base year) and the current year. The state will pay eligible municipalities in two annual installments from the fund, which will be funded by the existing "Highlands Protection Fund."