The Messenger reminds readers that the Iowa Sales Tax Holiday is an excellent opportunity to acquire needed items at a saving. The theory behind the bill is the sales tax weekend will help businesses by providing a boost in the economy and the consumer by allowing them to save money when shopping for clothing and shoes.
"We have our end of year clearance sale now", Richard Payne, owner of Feltner's Athlete's Corner, said.
Retail industry officials are planning to file initiative petitions leading to ballot questions that could reduce the sales tax, establish a permanent two-day sales tax holiday, or combine sales tax rate cuts and a permanent tax holiday.
What's covered under the holiday?
According to the National Retail Federation, families with children in grades K-12 plan to spend an average $673.57 on apparel and accessories, electronics, shoes and school supplies. Tax free weekend applies to clothing and shoes as long as individual items are under $100 each. School supplies and instructional materials pricedat $20 or less will also be tax exempt.
Eligible Clothes and footwear purchased online, by mail or through a catalog are exempt from sales tax if they are ordered and paid for during the sales tax holiday. If the policy makes sense, it should reflect the real world of back-to-school costs that shoppers face.
Southern Park Mall in Boardman will have a back-to-school arts, craft and home-based business show through Sunday.
There is no limit on the number of items purchased. A House Minority Leader Brad Jones bill (H 1548) to hold the holiday August 12 and 13 is also before the Revenue Committee.
The sales tax holiday does not apply to vehicle purchases, restaurant orders, hotel occupancy, leases or rentals of tangiple personal property, fix work, or admission to athletic, entertainment or recreational functions. "One thing I would say is if that was the case, retailers wouldn't be making this one of their significant legislative priorities year in and year out".