Animal adoption fees won’t be taxable for some per new law

BOISE, IDAHO – May 23, 2025 – Starting July 1, 2025, nonprofit organizations and local government agencies in Idaho won’t need to charge sales tax on adoption fees for animals in their care.

A new law (House Bill 457) states that animal adoption and rescue fees charged by local government agencies and nonprofits the IRS recognizes as 501(c)(3) organizations in Idaho are service fees and aren’t subject to sales tax.

Any organization that isn’t a local government agency or a recognized 501(c)(3) still needs to charge and send in sales tax on adoption fees.

All organizations must still charge and send in sales tax for sales of taxable goods such as pet food, collars, and T-shirts.

If you have any questions, please call us at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.