HLS 23RS-681 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 330
BY REPRESENTATIVE MIKE JOHNSON
TAX/SALES-USE-EXEMPT: Exempts from state and local sales and use tax agricultural
fencing materials and trailers acquired by commercial farmers
1 AN ACT
2To amend and reenact R.S. 47:337.9(D)(35), to enact R.S. 47:302(BB)(119), 305.79,
3 321(P)(120), 321.1(I)(120), 331(V)(120), and 337.9(D)(36), and to repeal R.S.
4 47:305.77, relative to sales and use tax exemptions and rebates; to repeal provisions
5 establishing a state sales and use tax rebate for the purchase of certain items by
6 commercial farmers; to provide for a state and local sales and use tax exemption for
7 the purchase, lease, or rental of certain items by commercial farmers; to exempt from
8 state and local sales and use tax certain agricultural fencing materials and trailers
9 purchased, leased, or rented by commercial farmers; to provide for a limitation
10 associated with the exemption; to provide for definitions; to provide for applicability;
11 to authorize administrative rulemaking; to provide for effective dates; and to provide
12 for related matters.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 47:337.9(D)(35) is hereby amended and reenacted and R.S.
1547:302(BB)(119), 305.79, 321(P)(120), 321.1(I)(120), 331(V)(120), and 337.9(D)(36) are
16hereby enacted to read as follows:
17 §302. Imposition of tax
18 * * *
19 BB. Notwithstanding any other provision of law to the contrary, including
20 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
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HB NO. 330
1 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
2 levied pursuant to the provisions of this Section, except for the retail sale, use,
3 consumption, distribution, or storage for use or consumption of the following:
4 * * *
5 (119) Agricultural fencing materials and trailers purchased, leased, or rented
6 by commercial farmers as provided in R.S. 47:305.79.
7 * * *
8 §305.79. Exemptions; certain agricultural fencing materials
9 A. The sales and use tax imposed by the state of Louisiana or any political
10 subdivision of the state shall not apply to the purchase, lease, or rental by
11 commercial farmers of agricultural fencing materials or trailers. However, no
12 exemption shall be granted for any purchase for which a rebate was issued in
13 accordance with R.S. 47:305.77.
14 B. For purposes of this Section, the following terms shall have the meanings
15 ascribed to them in this Subsection:
16 (1) "Agricultural fencing materials" means materials used for the enclosure
17 of lands used for agricultural purposes in the production of food and fiber.
18 (2) "Commercial farmer" has the same meaning as provided in R.S. 47:301.
19 (3) "Trailer" means any vehicle which meets the definition of "trailer"
20 provided in R.S. 32:1 and is purchased, leased, or rented by a commercial farmer for
21 exclusive use in agricultural production or to transport farm products from his farm
22 to a place where he transfers ownership of the farm products to another.
23 C. The secretary of the Department of Revenue may promulgate rules in
24 accordance with the Administrative Procedure Act as are necessary to implement the
25 provisions of this Section.
26 * * *
27 §321. Imposition of tax
28 * * *
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HB NO. 330
1 P. Notwithstanding any other provision of law to the contrary, including but
2 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
3 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
4 levied pursuant to the provisions of this Section, except for the retail sale, use,
5 consumption, distribution, or storage for use or consumption of the following:
6 * * *
7 (120) Agricultural fencing materials and trailers purchased, leased, or rented
8 by commercial farmers as provided in R.S. 47:305.79.
9 * * *
10 §321.1. Imposition of tax
11 * * *
12 I. Notwithstanding any other provision of law to the contrary, including but
13 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
14 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
15 levied pursuant to the provisions of this Section, except for the retail sale, use,
16 consumption, distribution, or storage for use or consumption of the following:
17 * * *
18 (120) Agricultural fencing materials and trailers purchased, leased, or rented
19 by commercial farmers as provided in R.S. 47:305.79.
20 * * *
21 §331. Imposition of tax
22 * * *
23 V. Notwithstanding any other provision of law to the contrary, including but
24 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
25 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
26 levied pursuant to the provisions of this Section, except for the retail sale, use,
27 consumption, distribution, or storage for use or consumption of the following:
28 * * *
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HB NO. 330
1 (120) Agricultural fencing materials and trailers purchased, leased, or rented
2 by commercial farmers as provided in R.S. 47:305.79.
3 * * *
4 §337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other
5 exemptions applicable
6 * * *
7 D.
8 * * *
9 (35) R.S. 47:305.79, "key words": lease, rental, or purchase of agricultural
10 fencing materials or trailers by commercial farmers.
11 (36) R.S. 47:6040, "key words": antique motor vehicles.
12 * * *
13 Section 2. R.S. 47:305.77 is hereby repealed in its entirety.
14 Section 3. The provisions of Section 1 of this Act shall apply to taxable periods
15beginning on or after August 1, 2023.
16 Section 4.(A) This Section and Sections 1 and 3 of this Act shall become effective
17on August 1, 2023.
18 (B) Section 2 of this Act shall become effective on August 1, 2024.
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 330 Original 2023 Regular Session Mike Johnson
Abstract: Establishes a state and local sales and use tax exemption for the purchase, lease,
or rental of agricultural fencing materials and trailers by commercial farmers; repeals
a state sales tax rebate for the purchase by commercial farmers of certain agricultural
fencing materials.
Proposed law provides that no state or local sales and use tax shall apply to the purchase,
lease, or rental by commercial farmers of agricultural fencing materials or trailers.
Stipulates, however, that no exemption shall be granted for any purchase for which a sales
tax rebate was issued in accordance with present law (R.S. 47:305.77).
Proposed law provides the following definitions for purposes of proposed law:
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HB NO. 330
(1)"Agricultural fencing materials" means materials used for the enclosure of lands used
for agricultural purposes in the production of food and fiber.
(2)"Commercial farmer" has the same meaning as provided in present law (R.S.
47:301).
(3)"Trailer" means any vehicle which meets the definition of "trailer" provided in
present law (R.S. 32:1) and is purchased, leased, or rented by a commercial farmer
for exclusive use in agricultural production or to transport farm products from his
farm to a place where he transfers ownership of the farm products to another.
Proposed law establishing the state and local sales and use tax exemption becomes effective
Aug. 1, 2023, and applies to taxable periods beginning on or after that date.
Present law (R.S. 47:305.77) provides for a state sales and use tax rebate for agricultural
fencing materials purchased on or before Dec. 31, 2022, by commercial farmers recovering
from certain hurricanes that impacted this state in 2020 and 2021. Allows farmers to apply
for the rebate until Dec. 31, 2023, and provides that no rebates shall be issued for
applications submitted after that date. Effective Aug. 1, 2024, proposed law repeals present
law.
(Amends R.S. 47:337.9(D)(35); Adds R.S. 47:302(BB)(119), 305.79, 321(P)(120),
321.1(I)(120), 331(V)(120), and 337.9(D)(36); Repeals R.S. 47:305.77)
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are additions.