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.
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.