RÉSUMÉ DIGEST
ACT 378 (SB 97) 2017 Regular Session Fannin
Prior law provided 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.
New law retains the prior law exclusions and exemptions, but limits their application to
commercial farmers who are defined by new 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, including 1065, 1120, and 1120S, filed by a person assigned a North
American Industry Classification System (NAICS) Code beginning with 11.
New law requires the Department of Revenue to promulgate rules in consultation with the
Department of Agriculture and Forestry by January 1, 2019, to provide for the application
of the definition of commercial farmer.
New law requires the Department of Revenue to honor farmer exemption certificates issued
under prior law until July 1, 2019.
Effective January 1, 2018.
(Amends R.S. 47:301(10)(e), 305.3, 305.8, 305.37(A), and 305.63; adds R.S. 47:301(30))