Frequently Asked Questions
Commercial Farmer Certification
Act 378 of the 2017 Regular Session of the Louisiana Legislature enacted R.S. 47:301(30) which defines a commercial farmer for the purposes of sales tax. In accordance with Act 378, the Louisiana Department of Revenue (“LDR”) has implemented a new certification process in which persons or entities must be certified as a commercial farmer by LDR in order to claim certain sales and use tax exemptions.
Prior farmer exemption certificates remain valid through June 30, 2019. These exemption certificates include (1) R-1007, Farm-Related Products, (2) R-1060, Farm Equipment Sales, and (3) R-1065, Non-Road Utility Vehicles Used Exclusively on Commercial Farms. For purchases made July 1, 2019 or later, a copy of the R-1091, Commercial Farmer Certification, must now be attached to the aforementioned completed exemption certificates in order for the customer to receive an exemption from state sales and use tax on the purchase of these farm-related items.
How do I obtain a commercial farmer certification from LDR?
For certification as a commercial farmer, applicants must complete and submit Form R-1085, Application for Certification as a Commercial Farmer, with certain federal income tax documentation such as Schedule F. If approved, the applicant will receive Form R-1091, Commercial Farmer Certification. The R-1085 is available for download on the LDR website.
Applicants may submit their application and required federal income tax information in one of three methods: fax to (225) 237-6755; mail to the address listed on the top of the application; or online via LDR’s LaTAP system by accessing latap.revenue.louisiana.gov. Applicants are encouraged to submit the application and required federal income tax information through the LDR’s LaTAP system for fastest processing times. Applicants should only submit the application and required federal income tax information through one of the three methods. If an application is submitted by mail and fax, approval of the application may be delayed.
Failure to submit all the required information will result in denial of the certification.
I have been approved as a commercial farmer and have received the R-1091, Commercial Farmer Certification. What should I do with it?
The front of the exemption certificate contains two perforated wallet-sized certification cards at the bottom of the certificate. These cards may be removed and carried in the commercial farmer’s wallet, purse, glove box, or other easily accessible area. The top portion of the certificate should be retained by the commercial farmer in a safe place. If necessary, copies may be made of the top portion of the certification and provided to vendors if the wallet-sized cards have been lost or damaged.
The commercial farmer must present the card to his or her vendor and complete the required applicable exemption certificate when purchasing farm-related items. The back of the certification contains a list of farm-related items that can be purchased exempt from state sales tax. For additional information about the use of this certification, taxpayers can contact LDR by email at Sales.Inquiries@la.gov. or by phone at (855) 307-3893.
Which exemption certificates require the commercial farmer certification number?
Beginning July 1, 2019, the following exemption certificates will require a copy of the commercial farmer’s R-1091 be attached in order to exempt the purchaser:
R-1007 – Farm-Related Products
R-1060 – Farm Equipment Sales
R-1065 – Non-Road Utility Vehicles Used Exclusively on Commercial Farms
When does my certification expire?
Applicants whose federal income tax documentation demonstrates farming income may be certified up to three years from the date of application. Applicants who are commencing farm operations at the time of application for certification may be granted a certificate with a one year expiration. All applicants are required to reapply for renewal of their certification.
I have already been certified by LDR as a manufacturer and have a R-1071 that does not expire for a year. Can I continue to use it to purchase farm equipment?
The R-1071, Manufacturer’s Exemption Certificate, may be used to document exempt status as a farmer for the purpose of purchasing farm equipment through June 30, 2019.
Beginning July 1, 2019, in order for farm equipment purchases to be exempt from state sales tax, a copy of the commercial farmer certification must be attached to a completed R-1060, Farm Equipment Purchases, exemption certificate in order for the sale to be exempted from state sales tax. After July 1, 2019, the R-1071 cannot be used to exempt the purchase of farm equipment.
Do I have to fill out an exemption certificate and provide a copy of my commercial farmer certification each time I make a purchase from a vendor?
It is not necessary to complete an exemption certificate and provide a copy of the commercial farmer certification each time a purchase is made. Once a vendor has an executed exemption certificate with a copy of the customer’s commercial farmer certification attached on file, the exemption certificate will be valid until the expiration of the commercial farmer certification.
For example, a commercial farmer has a certification that expires July 31, 2022. The commercial farmer provides their vendor with an executed exemption certificate and a copy of her commercial farmer certification on August 25, 2019. The executed exemption certificate will be valid until July 31, 2022, when the certification expires. Once the vendor has a properly completed exemption certificate on file, the exemption certificate may cover multiple purchases until the commercial farmer certification expires.
I rent horses for trail rides. Do I have to be certified as a commercial farmer?
Taxpayers who use animals in their business do not have to be certified as a commercial farmer. Louisiana Revised Statute 47:305(A)(4)(a) provides an exemption for the sales of feed and feed additives for animals used for business purposes. Business use is defined as the keeping and maintaining of animals which are used in performing services in conjunction with a business enterprise, such as sentry dogs and rental horses. The rental of horses would be considered a business enterprise. A business that races horses or breeds race horses for sale would fall within this business purpose exemption. Taxpayers should complete the R-1097, Farm-Related Products for Business Use sales tax exemption certificate and give it to their vendors. No commercial farmer certification is required for this exemption certificate.
I harvest crawfish in the Atchafalaya Basin. Do I need to be certified as a commercial farmer in order to purchase my bait?
Louisiana Revised Statute 47:305(A)(5)(a)and (b) exempts the purchase or use of bait, feed, materials, supplies, equipment, fuel and related items other than vessels when used in crawfish production or harvesting. If the crawfish harvest activity only involves the catching of wild crawfish, it will not be necessary to be certified as a commercial farmer. Taxpayers should complete the R-1319, Crawfish Production or Harvesting sales tax exemption certificate and give it to their vendors.
If the crawfish harvest or production activity involves the production of additional crops such as rice, the taxpayer should apply for certification as a commercial farmer as the taxpayer will need to be certified in order to purchase such items as fertilizer, pesticides, etc.
I am a catfish farmer. Do I need to be certified as a commercial farmer?
Louisiana Revised Statute 47:305(A)(6) exempts the purchase or use of bait, materials, supplies, equipment, fuel and related items other than vessels when used in catfish production or harvesting. It is not necessary to be certified as a commercial farmer in order to use this exemption. Taxpayers should complete the R-1387, Catfish Production or Harvesting sales tax exemption certificate and give it to their vendors.
I am a logger. Should I apply for the commercial farmer certification?
Loggers, paper and wood manufacturers do not need to be certified as a commercial farmer. These taxpayers must apply for certification as a manufacturer using the R-1070, Application for Certification as a Manufacturer for the Purpose of the Sales/Use Tax Exclusion for Manufacturing Machinery and Equipment. If approved, loggers, paper and wood manufacturers will receive the R-1391, Loggers and Paper and Wood Manufacturers sales tax exemption certificate. The R-1391 should be presented to vendors to exempt such purchases as qualifying manufacturing machinery or equipment, fuses, belts, felts, wires, conveyor belts, lubricants, diesel fuel for logging equipment and repairs and maintenance on qualifying manufacturing machinery and equipment as provided for by Louisiana R.S. 47:301(3)(k).
My customer has completed the R-1007 exemption certificate and attached his commercial farmer certificate R-1091. However, the information does not match. What should I do?
The purchaser information on the R-1007 exemption certificate should match the information on the R-1091, Commercial Farmer Certification. If it does not, then the exemption should be denied. Acceptance of a certificate without a matching commercial farmer certification could result in the vendor being liable for the sales tax, plus applicable interest and penalties.
Occasionally, farmers may have more than one “DBA” in their farm operations. For example, Smith Farms LLC may have two farm operations and may choose to call them different DBAs such as Butterfly Farms and Top Garden Farms in order to allocate expenses between the two farms. Smith Farms LLC may apply to LDR in writing to ask that an additional commercial farmer certification be issued in each DBA name to allow each operation to purchase farm-related items exempt from state sales tax. In the example above, LDR would issue a commercial farmer certification to Smith Farms LLC DBA Butterfly Farms and another certification would be issued to Smith Farms LLC DBA Top Garden Farms.
Taxpayers may submit their requests and supporting documentation for additional commercial farmer certifications to Sales.Inquiries@la.gov.
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