HLS 23RS-681 ENGROSSED
2023 Regular Session
HOUSE BILL NO. 330
BY REPRESENTATIVE MIKE JOHNSON
TAX/SALES-USE-EXEMPT: Creates a state and local sales tax exemption for purchases
of agricultural fencing materials by commercial farmers
1 AN ACT
2To amend and reenact R.S. 47:337.9(D)(35), to enact R.S. 47:305.79, 321(P)(120),
3 321.1(I)(120), 331(V)(120), and 337.9(D)(36), and to repeal R.S. 47:305.77, relative
4 to sales and use tax exemptions and rebates; to repeal provisions establishing a state
5 sales and use tax rebate for the purchase of certain items by commercial farmers; to
6 provide for a state and local sales and use tax exemption for the purchase of certain
7 items by commercial farmers; to exempt from state and local sales and use tax
8 certain agricultural fencing materials purchased by commercial farmers; to provide
9 for a limitation associated with the exemption; to provide for definitions; to provide
10 for applicability; to authorize administrative rulemaking; to provide for effective
11 dates; and to provide for related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 47:337.9(D)(35) is hereby amended and reenacted and R.S.
1447:305.79, 321(P)(120), 321.1(I)(120), 331(V)(120), and 337.9(D)(36) are hereby enacted
15to read as follows:
16 §305.79. Exemptions; certain agricultural fencing materials
17 A. The sales and use tax imposed by the state of Louisiana pursuant to R.S.
18 47:321, 321.1, and 331 and R.S. 51:1286 or any political subdivision of the state
19 shall not apply to the purchase by commercial farmers of agricultural fencing
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HB NO. 330
1 materials. However, no exemption shall be granted for any purchase for which a
2 rebate was issued in accordance with R.S. 47:305.77.
3 B. For purposes of this Section, the following terms shall have the meanings
4 ascribed to them in this Subsection:
5 (1) "Agricultural fencing materials" means gates, hog wire fencing, barbed
6 wire fencing, lumber or steel used as posts or rails, nails, screws, hinges, and
7 concrete consisting of premixed dry mortar used for the purpose of fencing
8 agricultural livestock.
9 (2) "Commercial farmer" has the same meaning as provided in R.S. 47:301.
10 C. The secretary of the Department of Revenue may promulgate rules in
11 accordance with the Administrative Procedure Act as are necessary to implement the
12 provisions of this Section.
13 * * *
14 §321. Imposition of tax
15 * * *
16 P. Notwithstanding any other provision of law to the contrary, including but
17 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
18 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
19 levied pursuant to the provisions of this Section, except for the retail sale, use,
20 consumption, distribution, or storage for use or consumption of the following:
21 * * *
22 (120) Agricultural fencing materials purchased by commercial farmers as
23 provided in R.S. 47:305.79.
24 * * *
25 §321.1. Imposition of tax
26 * * *
27 I. Notwithstanding any other provision of law to the contrary, including but
28 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
29 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
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HB NO. 330
1 levied pursuant to the provisions of this Section, except for the retail sale, use,
2 consumption, distribution, or storage for use or consumption of the following:
3 * * *
4 (120) Agricultural fencing materials purchased by commercial farmers as
5 provided in R.S. 47:305.79.
6 * * *
7 §331. Imposition of tax
8 * * *
9 V. Notwithstanding any other provision of law to the contrary, including but
10 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
11 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
12 levied pursuant to the provisions of this Section, except for the retail sale, use,
13 consumption, distribution, or storage for use or consumption of the following:
14 * * *
15 (120) Agricultural fencing materials purchased by commercial farmers as
16 provided in R.S. 47:305.79.
17 * * *
18 §337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other
19 exemptions applicable
20 * * *
21 D.
22 * * *
23 (35) R.S. 47:305.79, "key words": purchase of agricultural fencing materials
24 by commercial farmers.
25 (36) R.S. 47:6040, "key words": antique motor vehicles.
26 * * *
27 Section 2. R.S. 47:305.77 is hereby repealed in its entirety.
28 Section 3. The provisions of Section 1 of this Act shall apply to taxable periods
29beginning on or after August 1, 2023.
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HB NO. 330
1 Section 4.(A) This Section and Sections 1 and 3 of this Act shall become effective
2on August 1, 2023.
3 (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 Engrossed 2023 Regular Session Mike Johnson
Abstract: Establishes a state and local sales and use tax exemption for the purchase of
certain agricultural fencing materials by commercial farmers; repeals a state sales tax
rebate for purchases by commercial farmers of agricultural fencing materials used
to replace or repair enclosures in federally declared disaster areas that were damaged
or destroyed by hurricanes in 2020 or 2021.
Present law imposes a state sales and use tax on the sale, use, lease, or rental of tangible
personal property, which tax is composed of the following provisions of present law
imposing levies in the following amounts:
R.S. 47:302.......2.00%
R.S. 47:321.......1.00%
R.S. 47:321.1.......0.45%
R.S. 47:331.......0.97%
R.S. 51:1286.......0.03%
Present law provides for numerous exclusions and exemptions from state sales tax and local
sales tax.
Proposed law provides that no state or local sales and use tax, except the 2.00% levy
imposed by present law (R.S. 47:302), shall apply to the purchase by commercial farmers
of agricultural fencing materials. 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:
(1)"Agricultural fencing materials" means gates, hog wire fencing, barbed wire fencing,
lumber or steel used as posts or rails, nails, screws, hinges, and concrete consisting
of premixed dry mortar used for the purpose of fencing agricultural livestock.
(2)"Commercial farmer" has the same meaning as provided in present law (R.S.
47:301).
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.
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HB NO. 330
(Amends R.S. 47:337.9(D)(35); Adds R.S. 47:305.79, 321(P)(120), 321.1(I)(120),
331(V)(120), and 337.9(D)(36); Repeals R.S. 47:305.77)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Delete all instances of "lease or rental" in proposed law.
2. Delete proposed law providing a tax exemption for the acquisition of trailers.
Delete the defined term "trailer" and its corresponding definition from proposed
law.
3. Revise the definition of "agricultural fencing materials" for purposes of proposed
law.
4. Remove the tax exemption provided for in proposed law from present law
establishing a state sales tax levy of 2.00% (R.S. 47:302); retain the exemption,
as otherwise provided in proposed law, within the levies in present law
comprising the remainder of the state's overall sales tax (R.S. 47:321, 321.1, and
331 and R.S. 51:1286 which provide, collectively for a 2.45% sales tax).
5. Make technical changes.
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