Louisiana Senate Bill SB4

Louisiana 2020 2nd Special Session

• Introduced: 9/24/20
• Refer: 9/24/20
• Refer: 9/28/20

Caption

Exempts purchases of certain farm equipment from the state sales and use tax during a declared state of emergency or disaster. (gov sig) (Item #26) (OR DECREASE GF RV See Note)

Impact

This legislation modifies existing tax laws to create tax relief specifically for agricultural operators, reflecting a proactive approach in supporting farmers amid emergencies. The exemption aims to alleviate financial burdens by reducing the costs associated with essential farm equipment, which in turn may aid in maintaining agricultural productivity during challenging times.

Summary

SB4 provides for a state sales tax exemption for certain types of farm equipment purchased during a declared state of emergency or disaster. The bill stipulates that the sales tax will only apply to the portion of the price exceeding $500,000 for each item of farm equipment. Purchasers must certify that they are either farmers or buying on behalf of agricultural facilities, ensuring that the exemption is targeted towards stakeholders in the agricultural sector.

Sentiment

The sentiment around SB4 appears generally positive among agricultural stakeholders, who view the bill as a necessary measure to enhance support during emergencies. Legislators advocating for the bill highlight its importance in safeguarding food production capabilities in the state. However, there may be concerns about the budgetary impacts of tax exemptions during emergencies as state revenues could be affected in the long term.

Contention

While the bill has garnered support, some opposition may arise regarding the potential handling of emergency funds and the definition of 'farm equipment'. Critics may argue that such exemptions could lead to potential abuses or misinterpretations. The decision to limit the exemption to high-cost equipment may also be scrutinized, as smaller agricultural operators could feel overlooked without comparable relief.