This bill amends Chapter 36, Title 63 of the Idaho Code by adding a new section, 63-3622XX, which specifies that fees charged for animal adoption and rescue by local governments or nonprofit entities with 501(c)(3) tax-exempt status are classified as service fees. As such, these fees are not considered sales or use of tangible personal property and are exempt from sales and use taxes. The bill clarifies that these fees may include costs related to the care, feeding, housing, and transportation of the animals, and asserts that they have never been subject to such taxes.

Additionally, the bill declares an emergency, stating that it will take effect on July 1, 2025. This legislation aims to alleviate the financial burden on animal adoption and rescue organizations, encouraging more adoptions and support for animal welfare initiatives in Idaho.