Iowa sales tax holiday set for Aug. 7-8

Cedar Rapids and Linn County shoppers can buy qualifying clothing and footwear without paying Iowa’s state or local option sales taxes during the state’s annual sales tax holiday Aug. 7-8, according to the Iowa Department of Revenue.

The exemption begins at 12:01 a.m. Friday, Aug. 7, and ends at midnight Saturday, Aug. 8, the department said. Iowa’s state sales tax is 6%, and the holiday also exempts eligible purchases from the 1% local option sales tax, according to the department.

The exemption applies to clothing or footwear items selling for less than $100 each. The Department of Revenue said the rule applies per item, regardless of how many qualifying items appear on a single invoice.

The department’s guidance states: “No sales tax or local option sales tax will be collected on sales of an article of clothing or footwear having a selling price less than $100.00.”

All businesses open during the holiday must participate, according to the department. The exemption applies to eligible purchases made during the designated two-day period.

For local shoppers, the savings depend on the price and number of qualifying items purchased. An item priced at $100 or more does not qualify under the state’s rule, while each item priced below $100 may be exempt.