Sec. 7. 36 MRSA §1760, sub-§49, as repealed and replaced by PL 1999, c. 499, §1, is amended to read:

49. Child abuse and neglect councils; child advocacy organizations; community action agencies. Except for the sale, storage or use for activities that are mainly commercial enterprises, sales Sales to:

A. Incorporated, nonprofit child abuse and neglect councils as defined in Title 22, section 3872, subsection 1-A;

B. Statewide organizations that advocate for children and that are members of the Medicaid Advisory Committee; and

C. Community action agencies designated in accordance with Title 22, section 5324.

Sec. 8. 36 MRSA §1760, sub-§61, as amended by PL 2003, c. 588, §9, is further amended to read:

61. Construction contracts with exempt organizations. Sales to a construction contractor or its subcontractor of tangible personal property that is to be physically incorporated in, and become a permanent part of, real property for sale to any organization or government agency provided exemption under this section, except as otherwise provided by section 1760-C.

Sec. 9. 36 MRSA §1760-C, as amended by PL 1999, c. 708, §31, is further amended to read:

§1760-C. Exempt activities

Unless otherwise provided by section 1760, the sales or use The tax exemptions provided by that section 1760 to an entity a person based upon its charitable, nonprofit or other public purposes apply only if the property or service purchased is intended to be used by the entity person primarily in the activity identified by the particular exemption. The tax exemptions provided by section 1760 to a person based upon its charitable, nonprofit or other public purposes do not apply where title is held or taken by the person as security for any financing arrangement. Exemption certificates issued by the State Tax Assessor pursuant to section 1760 must identify the exempt activity and must state that the certificate may be used by the holder only to purchase when purchasing property or services intended to be used by the holder primarily in the exempt activity. When an otherwise qualifying exempt person is