Thursday's narrow rejection came after the Idaho Department of Fish and Game raised objections along with hunters and outfitters.
Rep. Judy Boyle, a Midvale Republican and ardent wolf foe, sought to hike wolf hunting tags by to $15 for residents, up $5.25, and $188.25 for non-residents, up $4.
From each license, Boyle then wanted to shift $8 into a "Wolf Depredation Account."
Half its proceeds would have gone to wolf control, half to livestock owners who lost animals to wolf attacks.
But Rep. Marc Gibbs, a former Idaho Fish and Game commissioner, said hunters worried about the poor precedent set by using hunting-tag revenue to reimburse ranchers.