Agriculture Commissioner Mike Strain says a sheriff suing a Washington parish cattleman for taxes unpaid from selling beef directly to customers on his farm is in error. Washington Parish Sheriff Randy “Country” Seal says Mount Herman rancher Jason Smith owes about $40-thousand in taxes and penalties. Strain cites the Louisiana state tax code, “The gross sales or proceeds derived from the sale of livestock and other farm products direct from the farm are exempted from tax levied by any taxing authority.”
Strain sent the sheriff a letter to that effect, but Seal and the parish tax collector say “livestock” is not the same as processed meat, and processed meat IS taxable. Strain says processed meat falls under “food & groceries” which ARE tax exempt in Louisiana. A great many farmers and ranchers sell meat and produce directly to customers without state or local sales taxes. He says Smith is worried, but so are food producers statewide.
“This could affect ALL the farmers in the state. We have more than 100 farmers that sell meat from the farm. so this will be a precedent case,” he says.
Strain says it will be up to a judge to decide if the tax code is not clear. If that judge finds for the plaintiff (the Washington Parish Sheriff’s Office) farmers could face huge losses. Strain says if that’s the case, the law CAN be further clarified.
“…and more than likely these issues are going to be re-addressed in the next legislative session.”
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