Iowa Sales Tax Holiday Offers Savings for Consumers!
The Iowa Department of Revenue is holding the 12th Annual Iowa Sales Tax Holiday on Friday, August 5th & Saturday, August 6th, 2011. During this 48 hour period, any businesses that are open are required to participate.
What items are exempt during the holiday?
- Clothing & footwear with a selling price of less than $100, will be exempt from sales tax during the holiday.
- Exempt clothing & footwear does not include watches, jewelry, umbrellas, 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.
For a complete list of Taxable & Exempt Items, please visit the Iowa Department of Revenue Website.
Tips for Consumers
- Layaway Sales are eligible to be exempt if the customer takes delivery of the merchandise or puts the merchandise on layaway during the holiday.
- Mail Order, or Online Orders are exempt if they are delivered or ordered and paid for during the holiday.
- When exchanging a tax-exempt purchase after the Sales Tax Holiday has ended, no additional tax is due.
- Items advertised as “buy one, get one free” or “buy one, get one for a reduced price” cannot be averaged in order for both items to meet the less-than-$100 requirement.
- Coupons, Rebates & Discounts do not reduce the sales price of an item, so a coupon cannot be used to reduce the selling price to less than $100 in order to qualify for the exemption.
If you have questions on the upcoming Sales Tax Holiday, please contact your
Terry Lockridge & Dunn accountant at (319) 364-2945.