Iowa retailers that sell clothing, shoes, or both will likely be significantly busier over the next two days, as this is the state’s annual sales tax-free weekend.
John Fuller, spokesman for the Iowa Department of Revenue, explains how it works: “I think it’s a good time for back-to-school shopping or any other type of shopping,” Fuller says. “Basically, there’s no sales tax on articles of clothing and footwear that are under $100. That’s the gist of it. It starts one minute after midnight on Friday and goes to midnight on Saturday.”
People are always looking for money-saving loopholes and Fuller says there are a few stipulations on the two-day offer.
“Clothing does not include things like jewelry, sports equipment, watches,” Fuller says, “and there’s a complete list of what is taxed — and what will not be taxed — at revenue.iowa.gov.”
He says the savings will grow based on how much you spend, and through Saturday night, you’ll be able to save plenty.
“Well, yeah, it’s 7%, that’s the state sales tax in most areas in state,” Fuller says, “so whenever you can save a little bit of money, that’s a good thing.”
This tax “holiday” is typically held the first weekend in August and it’s been an annual ritual since 2000. The event usually saves consumers a total of around five-million dollars over the two days.
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