Sales Tax Holiday August 3 &?4
It’s hard to believe that school starts in three weeks. The state of Iowa is giving shoppers a break as they make preparations for the new school year.
Iowa’s annual Sales Tax Holiday will be held on Friday and Saturday, Aug. 3 and 4. The holiday does not include Sunday.
On this Sales Tax Holiday, clothing and shoes under $100 will be exempt from sales taxes on those two days.
The sales tax holiday was created to give Iowa families some relief on back to school clothes, said State Representative John Wittneben of Estherville.
“Iowans have an opportunity to save some money next weekend when they purchase clothes and shoes for the upcoming school year,” he said. “I hope families will take advantage of the savings and support our Main Street businesses.”
This yearly Sales Tax Holiday is held the first Friday and Saturday of August. This year, the holiday hours are from 12:01 a.m., Aug. 3, 2012, through midnight, Aug. 4, 2012. Businesses that are open on these days are required to participate.
Here are some of the rules:
No sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100.00.
The exemption does not apply in any way to the price of an item selling for $100.00 or more
The exemption applies to each article priced under $100.00 regardless of how many items are sold on the same invoice to a customer
“Clothing” means any article of wearing apparel and typical footwear intended to be worn on or about the human body. Some of the qualifying items include shirts, pants, caps, socks, shoes and underwear.
“Clothing” does not include school supplies, backpacks, watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, roller blades, skates, and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
The full list of taxable and exempt items is available at the website: www.iowa. gov/tax/educate/holiday1.html.