Permits municipalities that host certain prisons to raise additional revenue through payments in lieu of taxes and certain employer payroll taxes.

This bill allows municipalities hosting state prisons to collect additional revenue through two specific mechanisms. First, it requires the state to pay municipalities a "payment in lieu of taxes" (PILOT) equal to $2.50 per day per inmate, based on a facility's maximum capacity. Second, it permits these municipalities to impose a 1% payroll tax on employees working at the prison. The funds collected must be used for municipal services and school purposes, with school portions transferred to local school districts. The bill clarifies that state prisons qualify as "State property" for PILOT requirements, which was previously unclear under existing law.