2014 Iowa Sales Tax Holiday

Iowa is once again having a sales tax holiday which allows you to purchase select clothing and footwear free from sales tax.  The sales tax holiday is an annual event held on the first Friday and Saturday of August.  For 2014, the holiday would be valid for purchases made on Friday, August 1 and Saturday, August 2, 2014.  Any business that is open on these dates is required to participate.  All qualifying purchases made on these two days would be free from sales tax, including any local option taxes that would normally be paid.

The sales tax holiday applies to any article of clothing or footwear that has a sales price of less than $100.  The exemption from sales tax is determined on each individual piece purchased, not the total amount.  It does not apply to any items with a selling prince of $100 or more.  It does not apply to watches, jewelry, sporting equipment, or any special clothing /footwear designed primarily for athletic activity or protective use.  The general rule is if it is appropriate for everyday wear, it will probably qualify for the exclusion.

 Additional information about the sales tax holiday can be found on the Iowa Department of Revenue website or by clicking here http://www.iowa.gov/tax/educate/holiday1.html.