HLS 23RS-720 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 502
BY REPRESENTATIVES MCFARLAND AND SEABAUGH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SALES & USE: Modifies the definition of the term commercial farmer by removing
certain reporting requirements
1 AN ACT
2To amend and reenact R.S. 47:301(30), relative to reporting requirements applicable to
3 commercial farmers; to remove certain reporting requirements applicable to those
4 persons and entities seeking to qualify as commercial farmers for tax purposes; and
5 to 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 term
14 "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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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-720 ORIGINAL
HB NO. 502
1 Code beginning with 11 to the Department of Revenue. The Department of
2 Revenue, in consultation with the Department of Agriculture and Forestry, shall
3 develop and promulgate rules to determine who meets this definition.
4 Notwithstanding any contrary provision of this Paragraph, the Department of
5 Revenue shall honor existing farmer exemption certificates issued by the department
6 until July 1, 2019.
7 (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph,
8 the term "commercial farmer" may include a landowner who is a party of a joint
9 venture and who leases land to a commercial farmer as defined in Subparagraph (a)
10 of this Paragraph. In order to qualify as a commercial farmer, the lessee landowner
11 shall submit documentation of the joint venture arrangement or a report of farm
12 income and expenses, including proof of lease income, from the joint venture on a
13 federal Schedule F form or similar federal tax form to the Department of Revenue
14 in order for the secretary of the department to make a determination that the taxpayer
15 is a commercial farmer.
16 * * *
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 502 Original 2023 Regular Session McFarland
Abstract: Removes the requirement that persons and entities seeking to qualify as
commercial farmers report income and expenses on a federal Schedule F form or
other federal tax form to the Department of Revenue.
Present law defines "commercial farmer" as those persons occupationally engaged in
producing food or agricultural commodities for sale. Further provides that these terms are
limited to those persons and entities regularly engaged in the commercial production for sale
of vegetables, fruits, crops, livestock, poultry, and other food or agricultural products that
report farm income and expenses on a federal Schedule F or similar federal tax form.
Proposed law modifies present law by removing the reference to reporting farm income and
expenses on a federal Schedule F or similar federal tax forms. Clarifies that individual and
corporate entities income and expenses are still to be reported to the Dept. of Revenue
(DOR).
Present law specifies that the term "commercial farmer" may include a landowner who is a
party of a joint venture and who leases land to a commercial farmer. However, specifies that
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-720 ORIGINAL
HB NO. 502
to qualify as a commercial farmer, the lessee landowner must submit documentation of the
joint venture arrangement or a report of farm income and expenses from the joint venture
on a federal Schedule F form or similar federal tax form to the DOR so the secretary can
determine if the taxpayer is a commercial farmer.
Proposed law modifies present law by removing the requirement that the lessee landowner
submit documentation of the joint venture to the DOR on a federal Schedule F form or
similar federal tax form.
(Amends R.S. 47:301(30))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.