This bill amends Chapter 36, Title 63 of the Idaho Code by adding a new section, 63-3622XX, which specifies that fees charged by nonprofit entities with 501(c)(3) tax-exempt status for animal adoption and rescue 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 support animal rescue organizations by alleviating the tax burden associated with adoption and rescue fees, thereby encouraging more adoptions and rescues of animals in need.