2017 Regular Session ENROLLED
SENATE BILL NO. 97
BY SENATOR FANNIN
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
18 commercial farmer as defined in R.S. 47:301(30). The Department of Agriculture
19 and Forestry may develop and promulgate guidelines to determine who meets this
20 definition. Any person meeting such guidelines shall receive a certificate from the
21 Department of Agriculture and Forestry indicating that such person is eligible to
22 purchase such items without paying tax thereon.
23 * * *
24 (30) The term "commercial farmer" shall mean only those persons
25 occupationally engaged in producing food or agricultural commodities for sale.
ACT No. 378
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1 These terms are limited to those persons, partnerships, or corporations
2 regularly engaged in the commercial production for sale of vegetables, fruits,
3 crops, livestock, poultry, and other food or agricultural products that report
4 farm income and expenses on a federal Schedule F or similar federal tax form,
5 including but not limited to 1065, 1120, and 1120S filed by a person assigned a
6 North American Industry Classification System (NAICS) Code beginning with
7 11. The Department of Revenue, in consultation with the Department of
8 Agriculture, shall develop and promulgate rules to determine who meets this
9 definition no later than January 1, 2019. Notwithstanding any contrary
10 provision of this Paragraph, the Department of Revenue shall honor existing
11 farmer exemption certificates issued by the department until July 1, 2019.
12 * * *
13 §305.3. Exclusions and exemptions; seeds used in planting of crops
14 The tax imposed by taxing authorities shall not apply to the sale at retail of
15 seeds to a commercial farmer as defined in R.S. 47:301(30) for use in the planting
16 of any kind of crops. The secretary shall may promulgate rules and regulations
17 designed to carry out the provisions of this Section, and any transaction not strictly
18 in compliance with such rules and regulations shall lose the exemption herein
19 provided in this Section.
20 * * *
21 §305.8. Exclusions and exemptions; pesticides used for agricultural purposes
22 The tax imposed by taxing authorities shall not apply to sale at retail to a
23 commercial farmer as defined in R.S. 47:301(30) of pesticides used for
24 agricultural purposes, including particularly but not by way of limitation,
25 insecticides, herbicides and fungicides.
26 * * *
27 §305.37. Exclusions and exemptions; diesel fuel, butane, propane, or other liquefied
28 petroleum gases used for farm purposes
29 A. The state taxes imposed by R.S. 47:302(A), R.S. 47:321(A), and R.S.
30 47:331(A) shall not apply to diesel fuel, butane, propane, or other liquefied
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Coding: Words which are struck through are deletions from existing law;
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1 petroleum gases used or consumed for farm purposes by a commercial farmer as
2 defined in R.S. 47:301(30). The secretary of the Department of Revenue shall adopt
3 and promulgate rules and regulations necessary to effectuate the exemptions granted
4 by this Section.
5 * * *
6 §305.63. Exemption; commercial farm irrigation equipment
7 The sales and use tax imposed by the state of Louisiana and its political
8 subdivisions whose boundaries are coterminous with those of the state shall not
9 apply to the sale of polyroll tubing sold to a commercial farmer as defined in R.S.
10 47:301(30) or used for commercial farm irrigation.
11 Section 2. This Act shall become effective on January 1, 2018.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.