Iowa, neighboring states take advantage of sales tax holiday
DES MOINES, Iowa (AP) — Iowa’s annual sales tax holiday is wrapping up as people across the state — and plenty from neighboring states like Nebraska and Missouri — scramble to get their back-to-school shopping done.
The holiday is held the first Friday and Saturday in August, and exempts sales tax on clothing and footwear items priced under $100. The exemption ends at midnight Saturday.
Sales tax in Iowa ranges from 6 cents to 7 cents on every dollar, depending on location. So, shoppers spending $200 on clothes and shoes in Iowa this Friday and Saturday would save between $12 and $14 they would normally have to pay in sales tax.
The exemption does not include back-to-school supplies, like backpacks, notebooks, calculators or sporting equipment.