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2023 Sales Tax Holiday: What is and isn't included?

Families looking to save on new clothes for back-to-school season are in luck.

IOWA, USA — Back-to-school season is officially here. As students and families look to refresh their fall wardrobes, they're in luck: Iowa's annual Sales Tax Holiday begins on Friday. 

Iowa Code section 423.3(68)(a)(2) stipulates that the Sales Tax Holiday will begin on the first Friday of August. 

This year, the holiday runs from 12:01 a.m. on Friday, Aug. 4 through midnight Saturday, Aug. 5. Over the course of those two days, Iowa businesses will not collect sales tax on articles of clothing or footwear, provided the item is less than $100. 

All Iowa businesses that are open over the holiday are required to participate. 

"We're on a budget. So the more savings I can find for us, then the more we can get so we just stopped at a store and got buy one shirt get two free," said Lori Stephens, who was shopping at the Outlets of Des Moines on Friday. "So that was a huge win."

However, not all apparel is treated equally. Here are a few items not covered by Iowa's Sales Tax Holiday: 

  • Watches
  • Jewelry
  • Umbrellas
  • Sporting equipment

Other back-to-school items, such as school supplies, are also not covered under Iowa's tax-free weekend. 

That's something customers hope will change.

"I feel like that would help a lot more people," said another shopper, Shataya English. "There's a lot of people out there who don't have enough money for school supplies for their kids, so their kids go to school without the stuff that they need."

For a full list of information and exemptions regarding Iowa's tax-free weekend, click here. 

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