The Iowa Department of Revenue has posted information for taxpayers concerning the upcoming sales tax holiday. This year the annual holiday on select clothing and footwear will be held on Friday and Saturday, August 5 to 6. The holiday does not include Sunday. All businesses that are open on those days and sell qualifying items are required to participate.
During the holiday, no sales tax, including local option sales tax, will be collected on sales of qualifying articles of clothing or footwear having a selling price of less than $100.
Qualifying items include:
- clothing and footwear considered appropriate for everyday wear, such as shirts, pants, caps, hats, socks, shoes, sandals, and underclothing;
- uniforms for work and school;
- adult and baby diapers;
- bathing suits;
- leotards and tights;
- and costumes.
Nonqualifying items that remain taxable during the holiday include:
- school supplies;
- and special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
More information is available on the Iowa Department of Revenue’s website: http://www.iowa.gov/tax/educate/holiday1.html