Iowans Can Save Money Shopping This Weekend
Iowans can save some money by spending cash this weekend.
How? Here's the answer.
Retailers aren't allowed to charge any sales tax on certain clothing, shoes and apparel items that are priced under $100. According to the Iowa Department of Revenue, the tax exemption applies to each article regardless of how many items are sold on the same invoice to a customer.
Iowa's 22nd annual tax-free holiday begins Friday at 12:01 AM and continues through Saturday, ending at 11:59 PM. Residents who shop on either day won't have pay the state's six-percent sales tax or any local tax -- which varies among municipalities -- on qualifying items.
With most school districts starting classes later this month, the annual break from sales tax is the perfect time for parents to get their kids ready for the upcoming academic year. It's also a time when some residents do advanced shopping for the holiday season.
Again, the waived sales tax applies to many clothing and footwear items priced under $100, and there is no limit on the number of items that can be purchased. Sales tax WILL be charged on the entire amount for items that cost $100 or more.
Tax-exempt qualifying products include jeans, dresses, suits and jackets. Some specialty items -- wedding dresses, tuxedos, uniforms and graduation caps and gowns (naming only a few) -- can also be purchased without paying sales tax.
The tax holiday does NOT include: watches, jewelry, umbrellas, sporting equipment, cosmetics, non-prescription sunglasses, and gift cards. Specialty clothing or footwear that's designed primarily for athletic activities or protective uses also is NOT included.
The Iowa Department of Revenue has published the list of items that are taxable and those that are tax-exempt during the two-day period. To see the full list of items that qualify and those that DO NOT qualify, CLICK HERE.
State officials started the sales tax holiday in 2000 to help parents purchasing back-to-school items and to promote shopping at small businesses. Each year, the popular event is held the first Friday and Saturday in August.
Iowa Department of Revenue officials estimate that Iowans saved about $4.6 million in sales tax during last year's two-day event.