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

This bill caps the amount the state can retain from energy tax revenues at $403 million annually. It requires the remaining revenue - after this cap - to be paid each year as municipal aid to New Jersey towns and cities. The bill amends existing law to ensure municipalities receive payments based on historical distributions from 1994-1996, with specific allocation rules to maintain minimum aid levels. It does not change tax rates but alters how existing energy tax funds are distributed. Municipalities directly affected include all 564 New Jersey municipalities receiving annual state aid from this fund.