The bill amends the law governing confidentiality of tax information to allow disclosure to the Department of Human Services and the Department of Behavioral and Developmental Services of information relating to the administration and collection of the hospital tax. This provision was inadvertently omitted from the supplemental appropriations bill enacted in November 2002, which imposed the new tax.

The bill allows the Department of Administrative and Financial Services, Bureau of Revenue Services to provide taxpayer information to the Department of Human Services, Office of Head Start and Child Care for purposes of certifying investments eligible for the quality child care investment credit.

The bill allows employees of the Bureau of Revenue Services to disclose certain information to the Finance Authority of Maine necessary to ensure that individual recipients are eligible to receive certain benefits under the Maine College Savings Program.

The bill deletes a redundant definition of the term "person" from the Sales and Use Tax Law. The same term is defined for all taxes in the general provisions of the tax laws.

The bill amends the definition of "retail sale" to clarify that sales of all kinds of video media for rental are not taxable, consistent with other statutory changes enacted in 2002.

The bill corrects outdated cross-references to sections 187 and 1951, which have been repealed, and makes various grammatical corrections.

The bill corrects a conflict between the Maine Revised Statutes, Title 36, sections 1861-A and 1951-A regarding an individual's use tax responsibility to the State. Title 36, section 1861-A added a reporting mechanism for an individual to report and pay use tax on small purchases made outside of the State, such as through mail order or shopping trips to places outside the State. This change to Title 36, section 1861-A would allow the use tax line on the individual income tax return to be used only for reporting use tax on items with a purchase price of $1,000 or less. Use tax on items with a purchase price of more than $1,000 would be due and payable by the 15th of the month following the date of purchase.