It allows municipal service districts, qualified service center communities and municipalities that the State Tax Assessor determines have achieved cost savings related to administrative services and used the money saved for property tax relief to adopt a 1% limited local option sales and use tax for specific purposes and for a specific time period, contingent upon the certification of the Commissioner of Economic and Community Development.

This Part provides for the reduction of the top individual income tax rates from 8.5% to 7.75% by reducing the tax rates by .0005 each year from 2005 to 2019. The reductions are partially funded from savings that are the result of reducing the cost-of- living adjustment by 1/2 during the same time period. The joint standing committee of the Legislature having jurisdiction over taxation matters is directed to review the impact of the rate reductions and the reduction in the cost-of-living adjustments. The committee is further authorized to report out implementing legislation to adjust the reductions provided for in this bill.

It repeals the Maine Revised Statutes, Title 36, chapter 105, subchapter 4-B as of April 1, 2004.

It expands the Maine Residents Property Tax Program, the so- called "circuit breaker" program, for applications filed after July 31, 2004. It provides that the changes to the Maine Residents Property Tax Program apply to applications filed after July 31, 2004.

It clarifies what personal property qualifies for reimbursement under the Business Equipment Tax Reimbursement program, as amended.

PART D