State sales tax holiday this weekend
By Fred Love Journal Des Moines Bureau | Posted: Tuesday, July 29, 2008
DES MOINES -- Back-to-school shoppers can save at least 6 percent on clothes and footwear this weekend during the statewide sales tax holiday.
The holiday suspends the 6 percent state sales tax, along with any local option sales taxes, Friday and Saturday for clothing and footwear items priced at less than $100.
Proponents of the holiday say shoppers and retail business owners benefit from the tax break. Shoppers' total savings during the weekend usually add up to between $2 million and $3 million, said Renee Mulvey, public information officer for the Iowa Department of Revenue.
Iowa began suspending sales taxes on the first Friday and Saturday of August nine years ago to give families a break as they prepare kids to go back to school, Mulvey said. The tax holiday also boosts business for retailers by bringing more shoppers in the door and encouraging them to buy more, she said.
Mulvey said retailers that sell items eligible for the tax suspension have to adjust to the holiday, and that caused some frustration in the first few years. But the department of revenue receives few complaints now, she said.
The SuperTarget in Waterloo will have no problem adjusting to the tax holiday, said Dave Fisher, store team leader. Computers will seamlessly manage the switch, Fisher said. He said the tax holiday comes at an ideal time for back-to-school shoppers, and he expects a boost in business this weekend.
"I think it'll be good for business," he said. "I think that any time that the guests can save some money, that's a good thing."
Rep. Jamie Van Fossen, R-Davenport, who pushed for the creation of the tax holiday, said he's worked to expand the list of items eligible for tax reduction to include computer equipment and school supplies, but his efforts have stalled in the Legislature each time.
He also wants to explore the possibility of extending the tax holiday from two days to three or four.
He said he was inspired to push for the legislation after listening to constituents who said they had a hard time affording all the things their children needed for school. Van Fossen said he drew on similar measures in other states to give those families some help. "The people who benefit the most are parents preparing their kids to go to school this fall," he said.
Muscatine-based Iowans for Tax Relief has supported the sales tax effort since the state began considering implementing the holiday, said President Jeff Boeyink.
Boeyink said he'd also like to see the list of eligible items expanded to school supplies. "Clearly, the people who are going to benefit most are the people who can afford these materials the least," he said. "A 6 percent benefit for families that struggle to make ends meet is significant."
Fred Love can be reached at (515) 243-0138 or fred.love@lee.net.
Items that will not be taxed Friday and Saturday:
-- Clothing and footwear considered appropriate for everyday wear such as shirts, pants, caps/hats, socks, shoes, sandals, underclothing
-- Uniforms for work and school
-- Diapers
-- Scarves
-- Bathing suits
-- Belts with buckles attached
-- Costumes
Items that still will be taxed Friday and Saturday:
Computers
Backpacks
School supplies
Jewelry
Fabric
Special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
Source: Iowa Department of Revenue
The holiday suspends the 6 percent state sales tax, along with any local option sales taxes, Friday and Saturday for clothing and footwear items priced at less than $100.
Proponents of the holiday say shoppers and retail business owners benefit from the tax break. Shoppers' total savings during the weekend usually add up to between $2 million and $3 million, said Renee Mulvey, public information officer for the Iowa Department of Revenue.
Iowa began suspending sales taxes on the first Friday and Saturday of August nine years ago to give families a break as they prepare kids to go back to school, Mulvey said. The tax holiday also boosts business for retailers by bringing more shoppers in the door and encouraging them to buy more, she said.
Mulvey said retailers that sell items eligible for the tax suspension have to adjust to the holiday, and that caused some frustration in the first few years. But the department of revenue receives few complaints now, she said.
The SuperTarget in Waterloo will have no problem adjusting to the tax holiday, said Dave Fisher, store team leader. Computers will seamlessly manage the switch, Fisher said. He said the tax holiday comes at an ideal time for back-to-school shoppers, and he expects a boost in business this weekend.
"I think it'll be good for business," he said. "I think that any time that the guests can save some money, that's a good thing."
Rep. Jamie Van Fossen, R-Davenport, who pushed for the creation of the tax holiday, said he's worked to expand the list of items eligible for tax reduction to include computer equipment and school supplies, but his efforts have stalled in the Legislature each time.
He also wants to explore the possibility of extending the tax holiday from two days to three or four.
He said he was inspired to push for the legislation after listening to constituents who said they had a hard time affording all the things their children needed for school. Van Fossen said he drew on similar measures in other states to give those families some help. "The people who benefit the most are parents preparing their kids to go to school this fall," he said.
Muscatine-based Iowans for Tax Relief has supported the sales tax effort since the state began considering implementing the holiday, said President Jeff Boeyink.
Boeyink said he'd also like to see the list of eligible items expanded to school supplies. "Clearly, the people who are going to benefit most are the people who can afford these materials the least," he said. "A 6 percent benefit for families that struggle to make ends meet is significant."
Fred Love can be reached at (515) 243-0138 or fred.love@lee.net.
Items that will not be taxed Friday and Saturday:
-- Clothing and footwear considered appropriate for everyday wear such as shirts, pants, caps/hats, socks, shoes, sandals, underclothing
-- Uniforms for work and school
-- Diapers
-- Scarves
-- Bathing suits
-- Belts with buckles attached
-- Costumes
Items that still will be taxed Friday and Saturday:
Computers
Backpacks
School supplies
Jewelry
Fabric
Special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
Source: Iowa Department of Revenue
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