Louisiana Department of Revenue Fixes Ag Tax Exemption Form Problem

The Louisiana Department of Revenue has fixed the problem with the form needed to receive agricultural tax exemptions as a commercial farmer.

Effective July 1, 2019 you must have a card issued by the Louisiana Department of Revenue to receive tax exemptions when you purchase agricultural inputs and supplies. The Department of Revenue calls that card "Form 1091." To receive Form 1091, you must first fill out Form 1085: Application for Certification as a Commercial Farmer. Per the instructions on the form, you must include your most recent Federal Income Tax schedule or form used to report farm income and expenses, most likely your Schedule F. You must also indicate whether or not you're a first time farmer.

If you are a first time farmer, the card you receive will be good for one year only and you'll have to fill out form 1085 again next year. If you are not a first time farmer, the card issued by the Department of Revenue will be good for three years.

If you do not submit Form 1085 and the requested information, you will have to pay full state sales tax on all purchases of feed, seed, fertilizer and other inputs starting on July 1. There is a chance the legislature could change the law this session. To keep up with what’s happening at the Louisiana State Capitol on this issue and all other bills important to agriculture, sign up for the Grassroots Government weekly e-newsletter