Clothing sales tax holiday is Friday and Saturday

By Bob Steenson, bsteenson@charlescitypress.com

Back-to-school clothing shoppers and others can take a break from paying the Iowa state sales tax the end of this week.

Iowa’s annual sales tax holiday takes place Friday and Saturday. Although it was originally designed to boost shopping for school clothing, any clothing that qualifies can be purchased and avoid paying the sales tax on those two days.

That includes avoiding the 6% Iowa sales tax as well as local sales tax, typically an additional 1%.

The tax holiday encompasses clothing items suitable for general use and priced less than $100 each. If an item is more than $100, sales tax will be charged on the entire amount.

There is no limit to the number of individual clothing items a shopper can buy and avoid the sales tax, as long as each item costs less than $100.

Items that have prices marked down for sale at the store for less than $100 qualify, but manufacturer’s coupons that reduce the price below $100 do not qualify for the sales tax exemption.

Clothing must be for general use, and does not include items such as watches, jewelry, sporting equipment or special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.

For example, cowboy boots under $100 are tax-free, but swim fins or ski boots are not.