Part B supports additional property tax reduction by promoting government efficiencies, including efficiencies that might assist implementing property tax reductions from additional state education funding, by the Intergovernmental Advisory Group.

Parts C and E establish caps on the growth of municipal and county spending, respectively. These caps may not be exceeded except in defined extraordinary circumstances or as overridden by a majority vote of the voters of the municipality or county.

Part D establishes a cap on total education costs. It also requires the State to increase its share of school funding by paying 50% of the total cost of essential programs and services in fiscal year 2006-07 and 55% in fiscal year 2008-09. As a result of this increased state aid to education, 90 cents of every dollar of the additional state aid are available for property tax reduction. The funds made available for property tax reduction, as a result of the State's increasing its share of education funding, must reduce property taxes. This property tax reduction may be overridden only by a majority vote of affected voters.

Part D also corrects a numbering problem created when Public Law 2003, chapter 504, Part A, section 6 and Initiated Bill 2003, chapter 2 both enacted substantively different provisions with the same section numbers.

Part F provides funding for increasing property tax relief over the period of time during which the State is increasing funding of education spending up to at least 55%. The specific relief provided is in an increase in the income limits and maximum payment amount to claimants under the Maine Residents Property Tax Program.

Part F expands the nonelderly portion of the Maine Residents Property Tax Program by increasing household income limitations to $50,000 for single-member households and $75,000 for multimember households. The expansion applies to program years beginning on or after August 1, 2005.

Part F directs the State Tax Assessor to undertake a study of the Maine Residents Property Tax Program in order to examine how the maximum benefits under the program may be increased over time. The State Tax Assessor is to report to the joint standing committee of the Legislature having jurisdiction over taxation matters by January 2, 2006.