Idaho Bills

Adds to existing law to provide that certain fees related to animal adoption and rescue are not subject to sales and use taxes.

Charities that save animals from starvation or euthanasia and find adoptive homes for them have recently been told by the Tax Commission that the animals they are saving are tangible personal property and that they need to charge sales tax on the “sale” of a rescued animal. This has been widely considered to be a service rather than a sale of goods. This legislation clarifies that this is a service and the fees charged by the non-profit to cover the costs of care, feeding, housing and transportation of the animals before they are placed with an adoptive family are not subject to sales tax.

Amends House Bill 40, House Bill 304, and existing law to revise provisions regarding certain tax deductions, certain corporate income tax rates, certain protections for taxpayers, and certain sales tax distributions and to revise an effective date.

This legislation is a trailer bill to H40 and H304 along with other changes to tax code.