The annual sales tax holiday has been set to begin on the first Friday in August. This will be the 10th year for the sales tax holiday which is August 7th and 8th. Iowa Department of Revenue spokesperson Renee Mulvey says it covers most clothing and shoes.

Mulvey says everyday clothing and footwear are exempt from the sales tax as long as they cost less than 100 dollars. The holiday was started with the idea of giving parents a break when buying back to school clothes for kids. Mulvey says the restrictions on what is tax exempt remain in place this year. She says you still will have to pay sales tax on computers, backpacks and school supplies.

Mulvey says the current economic situation will likely have people even more eager to take part as you can save six to seven percent right off the top, and the savings increase when stores offer sales. Mulvey says there is often confusion about the length of the holiday — which she says does not last all weekend.

Mulvey says people and businesses need to understand the holiday is Friday and Saturday only and does not include Sunday. She says if a business is open on the two days, they are required to participate. Mulvey says the holiday annually saves Iowans two to three million dollars in taxes. You can find a list of items that qualify for the sales tax exemption on the Iowa Department of Revenue website .