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 Engrossed 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 Dept. of Revenue (DOR).
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.
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 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 DOR so the secretary can determine if the taxpayer is a
commercial farmer.
Proposed law revises the present law definition of "commercial farmer" to mean a person regularly
and occupationally engaged in the commercial production of food, agricultural commodities, or
agricultural products for sale or a lessor landowner who leases an immovable for agricultural use to
a commercial farmer and maintains a joint venture contractual relationship with the farmer.
Proposed law removes references to a commercial farmer reporting farm income and expenses on
a federal Schedule F or similar federal tax forms and requirement that lessee landowners submit
documentation of the joint venture arrangement or report farm income and expenses from the joint
venture on a federal Schedule F form or similar federal tax form to DOR so the secretary can
determine if the taxpayer is a commercial farmer.
Proposed law prohibits state sales and use tax exemptions available to commercial farmers from
being allowed or claimed for or related to an "activity not engaged in for profit" as that term is
defined in present federal law.
(Amends R.S. 47:301(30))
Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Revise the definition of commercial farmer for purposes of state sales and use tax
exemptions.
2. Remove requirement that lessee landowners submit documentation of the joint venture
arrangement or report farm income and expenses from the joint venture on a federal
Schedule F form or similar federal tax form.
3. Add prohibition for state sales and use tax exemptions available to commercial farmers
from being allowed or claimed for or related to an "activity not engaged in for profit" as
that term is defined in present federal law.