This bill amends the definition of "commercial farmer" in Louisiana law by clarifying the criteria for individuals and entities seeking to qualify for tax purposes. The new definition includes two categories: (i) individuals who are regularly and occupationally engaged in the commercial production of food or agricultural products for sale, and (ii) lessor landowners who lease land for agricultural use to such individuals and maintain a joint venture relationship with them. The bill removes previous restrictions that limited the definition to specific types of entities and reporting requirements, thereby broadening the scope of who can be considered a commercial farmer.

Additionally, the bill authorizes the Secretary of the Department of Revenue, in consultation with the Department of Agriculture and Forestry, to promulgate necessary rules for the administration of exemptions available to commercial farmers and their registration. It also establishes that no state sales and use tax exemption for commercial farmers will be allowed for activities not engaged in for profit, as defined by federal law. This legislative change aims to streamline the qualification process for commercial farmers and ensure clarity in the application of tax exemptions.

Statutes affected:
HB502 Original: 47:301(30)
HB502 Engrossed: 47:301(30)
HB502 Reengrossed: 47:301(30)
HB502 Enrolled: 47:301(30)
HB502 Act 427: 47:301(30)