House Bill No. by Representative Mike Johnson proposes a state and local sales and use tax exemption for commercial farmers on the purchase, lease, or rental of agricultural fencing materials and trailers. This exemption is specifically aimed at aiding farmers in recovering from damages caused by hurricanes and other weather-related disasters. To qualify for the exemption, the materials or trailers must be used exclusively to repair or replace those that were substantially damaged or destroyed within 18 months prior to the transaction. The bill also includes definitions for "agricultural fencing materials," "commercial farmer," and "trailer," ensuring clarity on the terms used.

Additionally, the bill repeals the existing state sales tax rebate for agricultural fencing materials purchased by commercial farmers, which was established under R.S. 47:305.77. The new exemption will take effect on August 1, 2023, and will apply to taxable periods beginning on or after that date. The provisions of the bill aim to streamline tax relief for farmers while eliminating the previous rebate system, thereby simplifying the process for those affected by natural disasters.

Statutes affected:
HB119 Original: 47:9(D)(35)