HLS 19RS-1056 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 596
BY REPRESENTATIVES STEFANSKI, ADAMS, BAGNERIS, BOURRIAQUE, TERRY
BROWN, DAVIS, DEVILLIER, DWIGHT, EMERSON, GISCLAIR, GUINN,
LANCE HARRIS, HORTON, MIKE JOHNSON, ROBERT JOHNSON,
LACOMBE, MCFARLAND, JIM MORRIS, PIERRE, AND PYLANT
TAX/SALES-USE-EXEMPT: Defines a commercial farmer for purposes of certain sales
and use tax exemptions
1 AN ACT
2To amend and reenact R.S. 47:301(30), relative to sales and use tax; to define commercial
3 farmer; to require the submission of certain information; to require the Department
4 of Revenue to make certain determinations; to provide for an effective date; and to
5 provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:301(30) is hereby amended and reenacted to read as follows:
8 ยง301. Definitions
9 As used in this Chapter the following words, terms, and phrases have the
10 meanings ascribed to them in this Section, unless the context clearly indicates a
11 different meaning:
12 * * *
13 (30)(a) Except as provided in Subparagraph (b) of this Paragraph, the The
14 term "commercial farmer" shall mean only those persons occupationally engaged in
15 producing food or agricultural commodities for sale. These terms are limited to
16 those persons, partnerships, or corporations regularly engaged in the commercial
17 production for sale of vegetables, fruits, crops, livestock, poultry, and other food or
18 agricultural products that report farm income and expenses on a federal Schedule F
19 or similar federal tax form, including but not limited to 1065, 1120, and 1120S filed
20 by a person assigned a North American Industry Classification System (NAICS)
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HB NO. 596
1 Code beginning with 11. The Department of Revenue, in consultation with the
2 Department of Agriculture, shall develop and promulgate rules to determine who
3 meets this definition no later than January 1, 2019. Notwithstanding any contrary
4 provision of this Paragraph, the Department of Revenue shall honor existing farmer
5 exemption certificates issued by the department until July 1, 2019.
6 (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph,
7 the term "commercial farmer" may include a landowner who is a party of a joint
8 venture and who leases land to a commercial farmer as defined in Subparagraph (a)
9 of this Paragraph. In order to qualify as a commercial farmer, the lessee landowner
10 shall submit documentation of the joint venture arrangement or a report of farm
11 income and expenses, including proof of lease income, from the joint venture on a
12 federal Schedule F form or similar federal tax form to the Department of Revenue
13 in order for the secretary of the department to make a determination that the taxpayer
14 is a commercial farmer.
15 Section 2. This Act shall become effective on July 1, 2019.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 596 Reengrossed 2019 Regular Session Stefanski
Abstract: Expands the definition of commercial farmer to include a landowner who is a
party to a joint venture and leases land to a commercial farmer.
Present law provides for sales and use exemptions and exclusions for certain agricultural
inputs for commercial farmers who produce food or commodities at a profit and file their
farm income and expenses on federal tax forms.
Proposed law retains present law and expands the definition of commercial farmer to include
a landowner who is determined by the Dept. of Revenue to be a party to a joint venture and
who leases land to a commercial farmer, as defined by present law.
Proposed law requires the Dept. of Revenue to make a determination of whether a landowner
qualifies as a commercial farmer. Requires the landowner to submit documentation of the
joint venture or the report of farm income and expenses, including proof of lease income,
from the joint venture on a federal tax form to the secretary of the Dept. of Revenue.
Effective July 1, 2019
(Amends R.S. 47:301(30))
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HB NO. 596
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Change the documentation a landowner must submit to the Dept. of Revenue
from submission of documentation of the joint venture arrangement and a report
of farm income and expenses to submission of documentation of the joint venture
or a report of farm income and expenses.
2. Clarify that the form income and expense report include proof of lease income.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.