Sec. B-1. 30-A MRSA §2181, sub-§4, ķE, as enacted by PL 2003, c. 696, §12, is amended to read:

E. Identify best management practices and make this information available to the public, including, but not limited to, best management practices that facilitate property tax rate reduction pursuant to the increasing state share of the total cost of essential programs and services under Title 20-A, chapter 606-B;

PART C

Sec. C-1. 30-A MRSA §5721-A is enacted to read:

§5721-A.__Limitation on municipal appropriations

1.__Appropriation limit established.__Notwithstanding any other provision of law, a municipality may not in any fiscal year make an appropriation, including amounts appropriated or allocated to reserves, except as otherwise provided in this section, where such appropriation utilizes revenues collected through property taxes levied by such municipality, and where such appropriation would cause the municipality to exceed its property tax levy limit for the fiscal year.__A municipality's property tax levy limit for any fiscal year must be set at its property tax levy limit for the prior fiscal year, multiplied by the sum of the following: one; plus the income growth factor set forth in subsection 4; plus the municipality's annual property growth factor.__The annual property growth factor for a municipality is a fraction established by the municipality whose denominator is the total valuation of the municipality, and whose numerator is the amount of increase in the assessed valuation of any real or personal property in the municipality during the prior fiscal year that may become subject to taxation for the first time, or taxed as a separate parcel for the first time during such fiscal year, or that has had an increase in its assessed valuation over the prior year's valuation as a result of improvements to or expansion of the property.

2.__Scope.__Appropriation and property tax levy limits established in subsection 1 apply to any general fund appropriation of a municipality, other than appropriations and revenues related to tax increment financing districts or other similar special tax districts pursuant to state law, but do not apply to expenditures related to assessments or tuition