Posted on July 31, 2019 at 9:00 AM by Drew Kamp
More than a dozen states throughout the US support local small businesses by offering an annual tax-free weekend, also referred to as sales tax holidays. By doing so, they provide a two-day period in which sales tax is not included on eligible purchases.
Iowa’s 2019 Tax Free Weekend will occur on Friday, August 2nd and Saturday, August 3rd. It is important to note that Sunday, August 4th IS NOT included in this promotional period.
It is also important to note that not all goods qualify for this sales tax exemption. Eligible items include certain clothing and footwear items costing $100 or less. Additional information on qualifying, tax exempt, purchases can be found here and here.
Even if an item qualifies for a sales tax exemption, please note the State of Iowa does not consider "buy one, get one free" pricing when determining which items are tax exempt. Therefore, if you are considering a buy one, get one free promotion on a qualifying pair of $120 pants and assume the sales tax exemption will allow your purchase to average out to $60 per pair of pants, that is not the case, as you will need to pay sales tax on the “free” pair of pants.
Please be sure to take advantage of this unique opportunity to shop local, grow local during this year’s Tax-Free Weekend!
Categories: Enhancing Community