Iowa's annual sales tax holiday coming this weekend

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Posted: Tuesday, July 30, 2013 12:00 am

Searching for a break on back-to-school clothing and footwear?

Iowa and Nebraska residents can take advantage of Iowa's sales tax holiday, which runs Friday and Saturday.

On those days, stores remove the state's 6 percent sales tax and any local sales tax (1 percent in Council Bluffs) from everyday clothing or footwear priced at less than $100 per item.

Because Iowa residency is not a requirement, Nebraska shoppers can take advantage of Iowa's tax holiday, now in its 14th year.

Nebraska does not offer a sales tax holiday, but many of the state's retailers plan to offer special sales and promotions Friday and Saturday to keep Nebraska shoppers from venturing across the river.

Iowa's exemption applies to each item priced under $100 regardless of how many items are on the same receipt.

For example, a $99 pair of boots and a $99 jacket will each be exempt, even though the receipt totals $198.

A few other pointers:

>> Only store coupons and discounts can be used to reduce the price of an item and qualify for the sales tax exemption; manufacturer coupons do not qualify.

>> Eligible items that were put in layaway before the holiday are tax-free if they are paid off during the two-day holiday, and eligible items that are put in layaway during the holiday will be tax-free even if you pay them off at a later date.

>> Under Iowa law, all retailers open for business from 12:01 a.m. Friday through midnight Saturday are required to participate.

>> For more information, visit the Iowa Department of Revenue site

More examples of what's exempt and what's not:

Exempt: Bow ties, household aprons, baby bibs, adult and baby diapers, receiving blankets, bowling shirts, lingerie, chef's uniforms, clerical vestments, ear muffs, galoshes, golf clothing, hats, lab coats, pajamas, ponchos, robes, religious clothing, running shoes without cleats, Scout uniforms, bathing suits, ties, underwear and uniforms for work and school.

Taxable: Hair bows, hair clips and bands, handkerchiefs, athletic gloves, pads, supporters, handbags, purses, ballet shoes, billfolds, bowling shoes, briefcases, cleated and spiked shoes, corsages and boutonnieres, cosmetics, crib blankets, diaper bags, hunting vests, insoles, elbow and knee pads, life jackets and vests, roller blades, shower caps, sports helmets, umbrellas, wigs and toupees and yard goods.

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