The first Friday and Saturday of August offers a special time for shoppers here in Iowa. Whether it’s for back to school or just everyday shopping, consumers can enjoy paying no sales tax on select clothing and footwear.
The Iowa Department of Revenue has put together some information to narrow down exactly what does and what does not count for the sales tax break.
According to the Iowa DOR, no sales tax or local option sales tax will be collected on sales of an article of clothing or footwear having a selling price less than $100. 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.
An article of clothing is defined as “any article of wearing apparel and typical footwear intended to be worn on or about the human body”.
They specifically states that 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 do not apply to the sales tax holiday.
Bought something on Friday or Saturday and have to return it after the holiday? No problem. The Iowa DOR says, “when a customer purchases an eligible item during the exemption period, then later exchanges the item for the same item (different size, different color, etc.), no additional tax is due even if the exchange is made after the exemption period.”
Businesses that are open Friday, August 2 and Saturday, August 3 in Iowa are required to partake in the sales tax holiday.
For additional info on the sales tax holiday’s regulations and rules, checkout the Iowa DOR website.