House committee advances bill to exempt nonprofit animal adoption fees from sales tax

BOISE, Idaho — The Idaho House Revenue & Taxation Committee on Feb. 25 voted to send House Bill 263 to the full House with a due-pass recommendation after testimony from nonprofit rescuers and legal counsel that adoption fees are reimbursements for veterinary care and not sales.

Supporters told the committee that nonprofit rescues rely on adoption fees to cover medical care, sterilization and transportation and that taxing those fees would reduce the number of animals saved. Sponsor Representative Charlie Shepherd, R-District 7, said constituents who run rescues urged the legislation because they are being taxed “for essentially rescuing animals and bringing them back to health and then finding good homes for them.”

The bill would clarify that rehoming abandoned animals through a nonprofit rescue is a service and not a taxable sale of goods, supporters said. Attorney Ken McClure, who said he drafted…