Sec. G-7. Application. That section of this Part that repeals and replaces the Maine Revised Statutes, Title 36, section 6652, subsection 1-B, paragraph C applies to property tax years beginning on or after April 1, 2004.

Sec. G-8. Retroactivity. Those sections of this Part that amend the Maine Revised Statutes, Title 36, section 6652, subsection 1-B, paragraph B; repeal and replace Title 36, section 6652, subsection 1-B, paragraph C; and enact Title 36, section 6652, subsection 1-B, paragraph D apply retroactively to January 3, 2004.

SUMMARY

Part A affects the Maine Residents Property Tax Program, the so-called "circuit breaker program," by:

1. Changing the tax-to-income threshold to 100% of the benefit base that exceeds 5% of income;

2. Increasing the maximum rebate to $5,000;

3. Increasing the renter rebate to 25%; and

4. Allowing persons to use the income tax form to file for a refundable credit.

Part B increases from 5.1% to 8.5% the percentage of sales and income tax revenues transferred to the Local Government Fund for revenue sharing.

Part C reforms the income tax by increasing the personal exemption amount to equal the federal amount, increasing the earned income credit and making it refundable and creating a 10% income tax bracket for income of $100,000 or more for single filers, $150,000 or more for persons filing as heads of household and $200,000 for persons filing married joint returns.

Part D includes, in the services subject to the service provider tax, amusement and recreational, business, personal and professional services. Under this bill, the provision of those services is subject to the 5% tax. The term "construction services" is also defined for the purpose of distinguishing