SLS 17RS-419 ENGROSSED
2017 Regular Session
SENATE BILL NO. 97
BY SENATOR FANNIN
TAX EXEMPTIONS. Provides relative to the sales and use tax exemption for feed, seed,
and fertilizer used by commercial farmers. (1/1/18)
1 AN ACT
2 To amend and reenact R.S. 47:301(10)(e), 305.3, 305.8, 305.37(A), and 305.63 and to enact
3 R.S. 47:301(30), relative to sales tax; to provide relative to certain agricultural sales
4 and use tax exemptions; to define commercial farmer; to provide for an effective
5 date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:301(10)(e), 305.3, 305.8, 305.37(A), and 305.63 are hereby
8 amended and reenacted and R.S. 47:301(30) is hereby enacted to read as follows:
9 §301. Definitions
10 As used in this Chapter the following words, terms, and phrases have the
11 meanings ascribed to them in this Section, unless the context clearly indicates a
12 different meaning:
13 * * *
14 (10) * * *
15 (e) The term "sale at retail" does not include the sale of raw agricultural
16 commodities, including but not limited to feed, seed, and fertilizer, to be utilized in
17 preparing, finishing, manufacturing, or producing crops or animals for market by a
Page 1 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 97
SLS 17RS-419 ENGROSSED
1 commercial farmer as defined in R.S. 47:301(30). The Department of Agriculture
2 and Forestry may develop and promulgate guidelines to determine who meets this
3 definition. Any person meeting such guidelines shall receive a certificate from the
4 Department of Agriculture and Forestry indicating that such person is eligible to
5 purchase such items without paying tax thereon.
6 * * *
7 (30) The term "commercial farmer" shall mean only those persons
8 occupationally engaged in producing food or agricultural commodities for sale.
9 These terms are limited to those persons, partnerships, or corporations
10 regularly engaged in the commercial production for sale of vegetables, fruits,
11 crops, livestock, poultry, and other food or agricultural products that report
12 farm income and expenses on a federal Schedule F or similar federal tax form.
13 The Department of Revenue, in consultation with the Department of
14 Agriculture, shall develop and promulgate rules to determine who meets this
15 definition no later than January 1, 2019. Notwithstanding any contrary
16 provision of this Paragraph, the Department of Revenue shall honor existing
17 farmer exemption certificates issued by the Department until December 31,
18 2018.
19 * * *
20 §305.3. Exclusions and exemptions; seeds used in planting of crops
21 The tax imposed by taxing authorities shall not apply to the sale at retail of
22 seeds to a commercial farmer as defined in R.S. 47:301(30) for use in the planting
23 of any kind of crops. The secretary shall may promulgate rules and regulations
24 designed to carry out the provisions of this Section, and any transaction not strictly
25 in compliance with such rules and regulations shall lose the exemption herein
26 provided.
27 * * *
28 §305.8. Exclusions and exemptions; pesticides used for agricultural purposes
29 The tax imposed by taxing authorities shall not apply to sale at retail to a
Page 2 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 97
SLS 17RS-419 ENGROSSED
1 commercial farmer as defined in R.S. 47:301(30) of pesticides used for
2 agricultural purposes, including particularly but not by way of limitation,
3 insecticides, herbicides and fungicides.
4 * * *
5 §305.37. Exclusions and exemptions; diesel fuel, butane, propane, or other liquefied
6 petroleum gases used for farm purposes
7 A. The state taxes imposed by R.S. 47:302(A), R.S. 47:321(A), and R.S.
8 47:331(A) shall not apply to diesel fuel, butane, propane, or other liquefied
9 petroleum gases used or consumed for farm purposes by a commercial farmer as
10 defined in R.S. 47:301(30). The secretary of the Department of Revenue shall adopt
11 and promulgate rules and regulations necessary to effectuate the exemptions granted
12 by this Section.
13 * * *
14 §305.63. Exemption; commercial farm irrigation equipment
15 The sales and use tax imposed by the state of Louisiana and its political
16 subdivisions whose boundaries are coterminous with those of the state shall not
17 apply to the sale of polyroll tubing sold to a commercial farmer as defined in R.S.
18 47:301(30) or used for commercial farm irrigation.
19 Section 2. This Act shall become effective on January 1, 2018.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 97 Engrossed 2017 Regular Session Fannin
Present law provides for sales and use exemptions and exclusions for certain agricultural
inputs including feed, seed, fertilizer, pesticides, fuel, and irrigation equipment that are used
by anyone in preparing, finishing, manufacturing, or producing crops or animals for market.
Proposed law retains the present law exclusions and exemptions, but limits their application
to commercial farmers who are defined by proposed law as persons who produce such food
or commodities at a profit and file their farm income and expense on a federal Schedule F
or similar federal tax form.
Proposed law requires the Department of Revenue to promulgate rules in consultation with
the Department of Agriculture by January 1, 2019, to provide for the application of the
definition of commercial farmer.
Page 3 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 97
SLS 17RS-419 ENGROSSED
Proposed law requires the Department of Revenue to honor farmer exemption certificates
issued under present law until December 31, 2018.
Effective January 1, 2018.
(Amends R.S. 47:301(10)(e), 305.3, 305.8, 305.37, 305.63; adds R.S. 47:301(30))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Adds commercial farmer requirement to farm fuel and irrigation equipment
exemptions.
2. Changes commercial farmer definition to require reporting of farm income
and expenses on a federal tax form.
3. Requires Department of Revenue to issue rules by January 1, 2019.
4. Requires Department of Revenue to honor existing farmer exemption
certificates.
5. Changes effective date to January 1, 2018.
Page 4 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.