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

H 457 exempts animal adoption and rescue fees charged by local governments or 501(c)(3) nonprofits from Idaho's sales and use taxes. The bill reclassifies these fees as "service fees" rather than taxable sales, covering costs like animal care, feeding, housing, and transportation. It directly affects animal shelters, rescues, and municipal animal control facilities that charge adoption fees. The law takes effect July 1, 2025, and clarifies that such fees have never been subject to these taxes under current law.