DAVENPORT, Iowa — Families are getting ready for back-to-school shopping, with the new school year just around the corner.
Iowa will once again hold its annual tax-free weekend on Aug. 2-3, giving Iowans a chance to purchase eligible items without the state's 6-7% sales tax included.
All businesses open Friday and Saturday are required to participate, according to the Iowa Department of Revenue. Items priced at $100 or more will not be tax-exempt. Eligible items purchased online, through a catalog or by mail order are exempt if the items were ordered and paid for during the exemption period — even if the delivery is made after the sales tax holiday.
When is Iowa's 2024 tax-free weekend?
Iowa's tax-free weekend takes place Friday and Saturday, Aug. 2 and 3. The exemption period lasts from 12:01 a.m. on Friday through midnight on Saturday. Sunday is not included.
What items are eligible?
Most types of clothing, including footwear, are tax-exempt. The Department of Revenue defines clothing as "any article of wearing apparel and typical footwear intended to be worn on or about the human body." However, anything $100 or over is not exempt.
Anything sold as a set must be sold together. For example, if a pair of shoes costs $120, they cannot be sold individually at $60 each to get the exemption. If an eligible item is sold in a set with a non-eligible item, the full price will be taxed "if the value of the taxable items exceeds the exempt ones," according to the Department of Revenue's website.
Taxable items include but aren't limited to jewelry, umbrellas, handkerchiefs, sporting equipment, watches and any special clothing or footwear primarily used for protection or athletic use (i.e. not considered appropriate for everyday wear).
A list of taxable and exempt items can be found here.
What about returns and exchanges?
Customers are able to make returns and exchanges. Whether they will pay sales tax depends on the situation.
No additional sales tax is needed if a customer exchanges an eligible item for the same one in a different size or color. This applies even after the exemption period ends on Saturday. However, if the item is exchanged for something different (i.e. a shirt for a jacket) after Saturday, sales tax is due on the new item.
If a customer goes to return an eligible item before Saturday night, sales tax will only be refunded if the customer has a receipt showing tax was paid on the item or the retailer has documentation that tax was paid.
More information on what's taxable and what's exempt during Iowa's tax-free weekend can be found here.
Tips on saving money during back-to-school shopping
Shopping for the new school year can be stressful, and expensive. Consumer Reports compiled a list of money-saving tips for the back-to-school season. Here's what they had to say:
- Take your time when shopping and figure out what you need. Spend time researching deals or which retailer has the best prices on an item.
- Look for any student discounts or retailers offering promotions.
- Take advantage of tax holidays, like Iowa's!
- Many retailers have major sales during the summer. Keep your eyes peeled for when you can snag a deal.
- Set a budget and have a plan in place.
- Compare prices between retailers.
- Diversify where you shop to see if you can get items for cheaper elsewhere.
- Consider buying refurbished electronics.
- Keep a look out for any items you buy that go on sale. Some retailers might give a partial refund.