Louisiana Revised Statutes 47:305.4 – Exclusions and exemptions; utilities used by commercial farmers for on-farm storage
Terms Used In Louisiana Revised Statutes 47:305.4
- Manufacturing: means putting raw materials through a series of steps that brings about a change in their composition or physical nature in order to make a new and different item of tangible personal property that will be sold to another. See Louisiana Revised Statutes 47:301
- Sale: means any transfer of title or possession, or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property, for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, preparing or serving, for a consideration, of any tangible personal property, consumed on the premises of the person furnishing, preparing or serving such tangible personal property. See Louisiana Revised Statutes 47:301
- Storage: means and includes any keeping or retention in the taxing jurisdiction of tangible personal property for use or consumption within the taxing jurisdiction or for any purpose other than for sale at retail in the regular course of business. See Louisiana Revised Statutes 47:301
- use: include the donation of food items to a food bank as defined in Louisiana Revised Statutes 47:301
- Use tax: includes the use, the consumption, the distribution, and the storage as herein defined. See Louisiana Revised Statutes 47:301
A. Beginning October 1, 2021, the sales and use tax imposed by the state of Louisiana shall not apply to the sale or use of utilities used by commercial farmers for on-farm storage.
B. For purposes of this Section:
(1) “Commercial farmer” shall have the same meaning as defined in La. Rev. Stat. 47:301(30).
(2) “On-farm storage” means facilities or containers located in Louisiana that are separately metered for utilities and that contain raw agricultural commodities, including but not limited to feed, seed, and fertilizer, to be utilized in preparing, finishing, manufacturing, or producing crops or animals prior to the first point of sale.
(3) “Utilities” means steam, water, electric power or energy, natural gas, or energy sources as provided for in La. Rev. Stat. 47:305(D)(1)(b), (c), (d), (g), and (h).
C. The secretary of the Department of Revenue may promulgate rules and regulations necessary to implement the provisions of this Section.
Acts 2021, No. 53, §1, eff. June 4, 2021.