The Iowa General Assembly passed the Iowa Sales Tax Holiday in the year 2000.
This two day tax-free weekend has been a success in large and small towns across Iowa and has had an impact on many businesses within the state. Over the past four years, Iowans have experienced immediate savings on their back-to-school shopping and business has boosted beyond shoes and clothing.

>>The weekend is always the first Friday and Saturday of August.

>>The holiday does not include Sunday.

>>No sales tax or local option sales taxes, will be collected during that two-day period on articles of clothing or footwear.

>>The exemption applies to each article priced under $100 regardless of how many items are sold on the same invoice to a customer.

>>It does not apply to special clothing or footwear designed for athletic use or for jewelry, handbags, luggage, etc.

The Iowa Sales Tax Holiday also draws many shoppers from surrounding states. These out-of-state shoppers are making purchases in Iowa and it has helped all our business communities. The complete list of items - taxable or exempt plus instructions on record keeping can be found at the following web site: www.state.ia.us/tax/educate/holiday1.