(Atlantic) Iowa’s annual tax holiday is tomorrow and Saturday. Atlantic Chamber Director Bailey Smith says sales tax weekend allows families to save money as they prepare for their children’s return to school.
Anyone can take advantage of the sales-tax-free weekend, whether it be residents or non-residents of a community. Smith says the annual event also helps small businesses.
According to the Iowa Department of Revenue, businesses will not collect any sales tax, or local option sales tax for an article of clothing or footwear have a selling price of less than $100.00. The exemption applies to each piece priced under $100.00 regardless of how many items are sold on the same invoice to a customer.
The exemption includes any article of wearing apparel and typical footwear intended to be worn or about the human body.
The exemption does not include; watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, roller blades, skates, and any unique clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
This yearly holiday is the first Friday and Saturday of August. The state’s sales tax holiday begins at 12:01 a.m. on Friday and ends at Midnight the following day. The holiday does not include Sunday.
Businesses that are open these days are required to participate and cannot advertise they will pay or absorb the sales tax on items that do not qualify.
