Did a farmer have to sell products on the farm to qualify for Louisiana's producer sales-tax exemption?
Apply this to your situation
This page answers the general question as of 2001. Ask about yours and see what current Louisiana law means for your facts, with citations you can check.
Plain-English summary
The Caddo-Shreveport Sales and Use Tax Commission had read a farm-products sales-tax exemption to require sales on the farm premises. Louisiana's Attorney General disagreed. He said the phrase “direct from the farm” concerned the source of the sale: the producer had to sell the livestock, poultry, or other farm product directly. The statute did not make the farm itself the required place of sale.
The opinion relied on the statutory text, which excluded sales by anyone other than the producer, and on the Civil Code rule that words receive their ordinary meaning. The AG reported that the Department of Revenue shared this interpretation.
Currency note
This opinion was issued in 2001. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
Common questions
Did a farmer have to make the sale physically on the farm?
The AG said no. He distinguished “direct from the farm” from “on the farm” and focused on who made the sale.
Could a reseller claim the same exemption for farm products?
No. The statute quoted in the opinion withheld the exemption when a person other than the producer sold the products to consumers.
What products did the provision cover?
The opinion quoted the statute's reference to livestock, poultry, and other farm products sold directly by their producers.
Background and statutory framework
La. R.S. 47:305A(1) supplied the exemption and the explicit producer requirement. The tax commission had interpreted “direct from the farm” as a location rule. Citing Civil Code Article 11's ordinary-meaning approach, the AG rejected that reading and treated the producer as the relevant source.
Citations and references
- La. R.S. 47:305A(1)
- Civil Code Article 11
Source
- Landing page: https://www.ag.state.la.us/Opinions
- Original PDF: https://www.ag.state.la.us/Opinion/Download/01-0125
Original opinion text
May 17, 2001
OPINION NUMBER 01-125
119 TAXATION - EXEMPTIONS, GENERAL
160 TAXATION – SALES TAX
Mr. Henry N. Bellamy
CIVIL CODE ARTICLE 11
Attorney at Law
La. R.S. 47:305A(1)
920 Pierremont Road, Suite 412
Shreveport, Louisiana 71106 The terms “direct from the farm” as used in La. R.S.
47:305A(1) are not synonymous with “on the farm”.
Dear Mr. Bellamy:
We received your request for an opinion on behalf of the Caddo-Shreveport Sales and Use Tax Commission. You request our opinion regarding the application and interpretation of La. R.S. 47:305A(1), which provides as follows:
The gross proceeds derived from the sale in this state of livestock, poultry, and other farm products direct from the farm are exempted from the tax levied by this Chapter, provided that such sales are made directly by the producers. When sales of livestock, poultry, and other farm products made to consumers by any person other than the producer, they are not exempted from the tax imposed by this Chapter. (Emphasis added)
Pursuant to your request, the Caddo-Shreveport Sales and Use Tax Commission has interpretated this statute to mean that sales must be made on the farm premises to be exempt from the sales tax. We do not concur in this interpretation. Civil Code Article 11 provides that the words of a law must be given their general prevailing meaning. The word from, according to Merriam- Webster’s Collegiate Dictionary, Tenth Edition, is a function word indicating a source, cause, agent, or basis. In light of the above, the words contained in La. R.S. 47:305A(1) must be given their generally prevailing meaning.
Therefore, it is our opinion that “direct from the farm” is not synonymous with “on the farm”. Rather, the sale of livestock, poultry, and other farm products, in order to be exempt from the sales tax, must be from the farm, i.e., from the producer. The statute specifically provides that if the sale is made by any person other than the producer, it is not exempt from the tax. It therefore stands to reason that the issue is the source of the sale rather than the place of the sale.
Please be advised that we discussed our interpretation of this statute with the Department of Revenue and were informed that the Department shares our interpretation. You may consider discussing the matter further with Revenue at (225) 925-7335, Sales Tax Division.
Page 2
Mr. Henry N. Bellamy
Opinion No. 01-125
Page 2
If you have any questions or comments, please do not hesitate to contact our office.
With kindest regards,
Very truly yours,
RICHARD P. IEYOUB
ATTORNEY GENERAL
BY:
TINA VICARI GRANT
Assistant Attorney General
RPI/TVG:crt
Page 3
Mr. Henry N. Bellamy
Opinion No. 01-125
Page 3
OPINION NUMBER 01-125
SYLLABUS
119 TAXATION - EXEMPTIONS, GENERAL
160 TAXATION – SALES TAX
CIVIL CODE ARTICLE 11
La. R.S. 47:305A(1)
The terms “direct from the farm” as used in La. R.S. 47:305A(1) are not synonymous with “on the farm”.
Mr. Henry N. Bellamy
Attorney at Law
920 Pierremont Road, Suite 412
Shreveport, Louisiana
DATE RECEIVED: 03/26/01
DATE RELEASED: May 17, 2001
AUTHOR: TINA VICARI GRANT
Assistant Attorney General
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