Concerns municipal use of employer payroll tax.

This bill allows New Jersey municipalities to impose an employer payroll tax of up to 1% for general municipal purposes, with a new provision enabling them to retain up to 5% of collected tax revenue annually to cover administrative costs. For municipalities with a median household income of $55,000 or higher, the bill mandates that all employer payroll tax revenues must be deposited into a trust fund exclusively for school purposes, including charter schools. The trust fund provides monthly payments to school districts to cover the gap in state school aid between current fiscal years and 2018, replacing certain state aid categories. This policy directly affects municipalities implementing the tax and their local school districts, particularly in higher-income areas.