Were a plant nursery's machinery, equipment, inventory, and furniture exempt from Louisiana property tax?

Plain-English summary

The Lincoln Parish assessor asked whether a nursery's machinery, equipment, furniture, and inventory were subject to ad valorem tax. In Opinion 03-0297, the AG said the machinery, equipment, and inventory were exempt if they were used exclusively for agricultural purposes and remained in the original producer's possession. It linked that conclusion to the Louisiana constitutional exemption for agricultural products and the statute defining agricultural machinery and implements.

The opinion did not give a blanket answer for furniture. The AG said it needed to know what kind of furniture the nursery had and how it was used in cultivating or producing crops before deciding whether it qualified.

Currency note

The full issue date is not legible in the available official extract. 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.

What the opinion meant at issuance

Nursery and assessor

The AG treated nursery machinery, equipment, and inventory as exempt on the stated facts: exclusive agricultural use and possession by the original producer. Those conditions mattered to its answer.

Furniture

The opinion left the furniture issue open because its use in the cultivation or production of crops was not described. It did not classify every item of nursery furniture as exempt.

Common questions

Q: Was nursery equipment exempt from ad valorem tax?
A: The AG said yes when it was used exclusively for agricultural purposes and remained with the original producer.

Q: Did the opinion also cover a nursery's inventory?
A: Yes. The AG included inventory in its conditional exemption conclusion.

Q: Was nursery furniture automatically exempt?
A: No conclusion was reached. The AG said it lacked facts about the furniture and its use in crop cultivation or production.

Background and statutory framework

The AG cited Article 7, Section 21 of the Louisiana Constitution for the agricultural-products exemption and La. R.S. 47:1707 for a definition covering agricultural and horticultural implements used in cultivation, production, and harvest. It applied those provisions to the nursery property described by the assessor.

Citations and references

Statute cited: La. R.S. 47:1707. Constitutional provision cited: Article 7, Section 21 of the Louisiana Constitution.

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/03-0297

Original opinion text

DEPARTMENT OF JUSTICE
One American Place
301 Main Street, Suite 600
CIVIl. DIVISION
P.O. Box 94005
BATON ROUGE
TEL.: (225) 342-7013
FAX: (225) 342-2090
RICHARD P. IEYOUB
70804-9005
ATTORNEY GENERAL

SEP ] S 2003
Opinion Number 03-0297

4 Assessors
119 Taxation
Ms. Pam C. Jones, CLA
La. R.S. 47:1707
Assessor, Parish of Lincoln
Article 7, Section 21 of the Louisiana Constitution
P.O. Box 1218
Ruston, LA 71273-1218
Machinery, equipment, and inventory of nursery are
exempt from ad valorem taxation.
Dear Ms. Jones:

As the Assessor for Lincoln Parish, you question if machinery, equipment, furniture, and the inventory of a nursery is subject to state ad valorem taxes. In short, we believe that they are exempt from ad valorem taxation.

Article 7, Section 21 of the Louisiana Constitution exempts agricultural products including machinery and other implements used exclusively for agricultural purpose, while owned by the producer from ad valorem taxation. Although the constitution does not specifically define agricultural products, La. R.S. 47:1707 does. It defines agricultural machinery and other implements used exclusively for agricultural purposes as both agricultural and horticultural implements employed in the cultivation, production, and harvest of crops. It is, therefore, our opinion that nursery machinery, equipment, and inventory, as long as they are used exclusively for agricultural purposes and are in the possession of the original producer, are exempt from ad valorem taxation.1 As to the furniture, we question what type and/or how such furniture is used in the cultivation or production of crops. We simply cannot make a conclusion regarding furniture without more information.

We trust that this adequately responds to your request. If you have any questions or comments, please do not hesitate to contact our office. With kindest regards,

Yours very truly,

RICHARD P. IEYOUB
Attorney General

-TIN’A ~’C’A-RI GIR,~I~T° " "
Assistant Attorney General

RPI/TVG/dam

See Attorney General Opinion No. 94-83.