Most holidays cost you money for presents or cards, but a holiday this weekend is designed to save you money. The sixth annual Iowa Sales Tax Holiday is Friday and Saturday. During those two days you don’t have to pay the five-percent state sales tax or any local option tax. Renee Mulvey of the Iowa Department of Revenue says the holiday covers mostly clothing items that cost under $100. She says it’s the typical type of clothing you wear to work, school or home. The law does not grant the sales tax exemption for uniforms, adult and baby diaper, scarfs, costumes and bathing suits. The holiday was started as an effort to give parents a break on back to school shopping, but says some things like computers, backpacks and basic school supplies like paper and pencils are NOT tax exempt. Mulvey says any business that’s open and selling the exempt items has to take part in the sales tax holiday. The state does track the purchases made during the holiday, and last year officials estimate consumers saved $2.4 million by not paying sales tax. Mulvey says the tax numbers indicate the holiday has gotten more popular. She says the first year they estimated that sales taxes saved were $1.3 million. For a complete list on what is tax exempt, surf to the State of Iowa website at: www.state.ia.us, and then go to the Department of Revenue page.
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