8.__Legislative findings.__The Legislature finds that encouragement of the growth of capital investment in this State is in the public interest and promotes the general welfare of the people of the State.__The Legislature further finds that the high cost of owning qualified business property in this State is a disincentive to the growth of capital investment in this State.__ The Legislature further finds that the tax exemption set forth in this section is a reasonable means of overcoming this disincentive and will encourage capital investment in this State.

Sec. C-4. 36 MRSA c. 105, sub-c. 4-B, as enacted by PL 1997, c. 643, Pt. HHH, §3 and affected by §10, is repealed.

Sec. C-5. 36 MRSA c. 216 is enacted to read:

CHAPTER 216

LIMITED LOCAL OPTION SALES AND USE TAX

§1871.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Capital project.__"Capital project" means a major, permanent or long-lived improvement, including, but not limited to, the acquisition or development of land and structures and related equipment, that would be properly chargeable to a capital asset account, as distinguished from current expenditures and ordinary maintenance expenses.

2.__Eligible municipality.__"Eligible municipality" means:

A.__A municipal service district established pursuant to Title 30-A, chapter 112; and

B.__A municipality that has demonstrated to the satisfaction of the assessor that it has adopted administrative and other service-delivery practices that achieve cost savings in operating funds related to administrative services and that the money saved has been directed for property tax relief.