NJ S3310

Caps the State of New Jersey's annual retention of energy tax revenues at $403 million, matching the fiscal year 1998 "skimming" amount, with all remaining energy tax revenues required to be distributed to municipalities as property tax relief aid.

Directs that total annual revenue from energy-related sales and use taxes, corporation business taxes on gas, electric, and telecommunications utilities, and taxes on sewerage and water corporations flow to the Energy Tax Receipts Property Tax Relief Fund, minus the $403 million state portion.

Adjusts the municipal aid distribution schedule to: 45% on August 1, 30% on September 1, 15% on October 1, 5% on November 1, and 5% on December 1 of each fiscal year.

Requires that if total fund revenue increases or decreases from the prior year, individual municipal aid payments adjust proportionally based on each municipality's prior year distribution.

Repeals the existing alternative diversion formula under section 3 of P.L.1997, c.167 and establishes an enforcement mechanism that eliminates corporation business tax liability for most taxpayers if the annual appropriations act fails to fully fund the required municipal distributions.