New Certification Process for Sales Tax Exemption Everyone, The process for receiving the state sales and use tax exemption for purchasing of agricultural inputs will be changing. Historically, a producer would complete an exemption certificate form and provide to the input supplier. For example, a cattle rancher or row-crop producer would complete the Louisiana Department of Revenue’s (LDR) Form R-1007 and provide it to the input supplier to be able to purchase inputs without paying state sales and use tax (or pay them at a lower rate). However, on January 15, 2019, the Louisiana Department of Revenue 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. This new process will become effective on July 1, 2019. Until that time, the old process of simply filling out the exemption certificate form will still be accepted. To become certified as a commercial farmer, the farmer must Form R-1085, Application for Certification as a Commercial Farmer, and attach certain federal income tax documentation such as Schedule F. It appears that this is a one-time application. In other words, you do not have to re-apply each year. Also, there is no indication of any cost to apply. The application may be submitted in one of three methods:
1) Fax the application to LDR at 225-237-6765
2) Mail the application to:
Louisiana Department of Revenue
Revenue Processing Center
PO Box 4998
Baton Rouge, LA 70821-4998
3) Apply online via LDR’s LaTAP system by accessing : https://latap.revenue.louisiana.gov/_/ If the application is approved, the person or entity will receive Form R-1091, Commercial Farmer Certification. Each certification will contain two pocket-size versions of the certification. Beginning July 1, 2019, a copy of this Form R-1091 will need to be attached to the exemption certificates listed below for the producer to receive an exemption from state sales and use tax:
R-1007 – Farm –Related Products (Commercial Farmers Only)
· R-1060 – Farm Equipment Sales Tax Exemption Certificate
· R-1065 – Non-Road Utility Vehicles Used Exclusively on Commercial Farms.
So, after July 1, 2019, in order for a producer to purchase fertilizer, for example, without paying the state sales and use tax, that producer would need to complete exemption certificate (Form R-1007), attach a copy of his Commercial Farmer Certification (Form R-1091) and provide it the input supplier.