New Taxes Fall on Agriculture

by Bobby Skeen, Louisiana Cotton & Grain Association

There are several new taxes that hit the books that are having a big effect on agriculture. Many of those, despite opposition from the agricultural industry, will continue for the next couple of years. Below are the ones that most likely effect our members of the Louisiana Cotton & Grain Association, most notably, the one regarding poly pipe that is already in place!

LA R.S. 47:305.63-Sale of poly roll tubing used for commercial farm irrigation.  The new tax rate is 5% having begun 4/1/16 through 6/30/16, then 3% beginning on 7/1/16 through 6/30/18.

LA R.S. 47:305(A)(4)(b)(ii)-Sales of feed and feed additives for animals used for business purposes.  The new tax rate will be 1% beginning 7/1/16 through 3/31/19.

LA R.S. 47:305(A)(5)(a) Sales of materials, supplies, equipment, fuel and related items other than vessels used in the production and harvesting of crawfish. The new tax rate will be 1% beginning 7/1/16 through 3/31/19.

LA R.S. 47.305 (A)(4) & (5)-First $50,000 of the sales price of other farm implements and equipment used for agricultural purposes in the production of food and fiber and on the farm facilities used to dry or store grain or any materials used to construct such on the farm facilities.  The new tax rate will be 1% beginning 7/1/16 through 3/31/19.