State’s tax-free weekend starts Friday

Around the Area

BY PCC STAFF

FORT MADISON – This year’s annual sales tax holiday is the first weekend in August, or Friday, August 3, and Saturday, August 4th.  The holiday does not include Sunday.  No sales tax (including local taxes) is collected on sales of any clothing or footwear that has a sales price of less than $100.  T
he holiday applies to each article that is priced at less than $100, no matter how many items are sold to any customer.  The holiday does not apply to any item that is sold for $100 or more.

Any business that is open during the sales tax holiday will participate. The exemption period: from 12:01 a.m. Friday through midnight Saturday. No sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100.00. The exemption does not apply in any way to the price of an item selling for $100.00 or more. The exemption applies to each article priced under $100.00 regardless of how many items are sold on the same invoice to a customer

The sales tax holiday does not apply to watches, jewelry, sporting equipment, handbags, or wallets.  Store coupons and discounts can reduce the sales price below $100 to qualify for the Sales Tax Holiday, but manufacturer coupons cannot.  If items are usually sold as a unit, those items cannot be split up so that each piece qualifies for the $100 requirement.  Coupons that bring an item under the $100 limit do not qualify the item(s) to be tax free.

Additional information on the Sales Tax Holiday can be found at https://tax.iowa.gov/iowas-annual-sales-tax-holiday.

About Chuck Vandenberg 5283 Articles
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