The Iowa Department of Revenue and Finance finds itself in a “catch-22” over the upcoming “Sales Tax Holiday.” The third annual sales tax holiday August 2nd and 3rd, gives Iowans a chance to buy clothing and shoes tax-free. The irony is — a tight state budget due to lagging overall tax collections — means the Department of Revenue and Finance won’t send mass mailings to businesses to remind them of the holiday.Department spokesperson Renee Mulvey says they’ll depend on the media, and e-mails to remind businesses about the holiday. Mulvey says all state retailers are obligated to participate.Mulvey says any business that’s open on those two days, MUST take part in the sales tax holiday. Mulvey says they really just need to remember the dates as the rules haven’t changed this year. The tax-free items must be everyday clothing or footwear, a must cost less than 100 dollars. The department’s figures from the first tax holiday showed Iowans save one-point-six million dollars in taxes.
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