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 Reengrossed 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. The term also means electric
fence wire, insulated posts, power sources, grounding systems, warning signs, and other
components of electric agricultural fencing.
(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.
(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.
The House Floor Amendments to the engrossed bill:
1. Amend the definition of "agricultural fencing materials" in proposed law to provide that
the term also means electric fence wire, insulated posts, power sources, grounding
systems, warning signs, and other components of electric agricultural fencing.