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 the option to retain up to 5% of collected revenue for administrative costs. For municipalities with a median household income of $55,000 or more, it requires all employer payroll tax revenue to be used exclusively for school funding, specifically to help cover the gap in state school aid compared to 2018. The bill amends existing law (P.L.1970, c.326) and takes effect immediately. It directly affects municipalities and employers within those jurisdictions.