It’s coming right up – this coming weekend, August 1 & 2! “It” is Iowa’s annual sales tax holiday on qualifying clothing and footwear purchases. You’ll find all the details here but the key point is that most purchases of clothing and footwear priced under $100 will be exempt from state and local sales tax during that 48-hour period.
It’s a savings of 7% – not something to sneeze at. In addition, many retailers will advertise discounts for that weekend to increase consumers’ incentive to shop. I’m writing this post to remind readers of the event, and also to remind you to keep it in perspective. Savings of 7% is not enough reason to buy things you don’t need and would hardly use. If there are things you need, though, this weekend is a great time to buy them.
The tax holiday is intentionally placed during back-to-school shopping season to make it helpful to consumers. Before shopping, especially for growing children, it’s smart to take inventory of what you have, finding out what still fits, and what has been worn out or outgrown. That will help you make a shopping list and prioritize the items you might want to buy. And of course as you make that list, keep your budget in mind; decide how much you can afford to spend on clothing this weekend or this month.
Here’s what could happen without a good inventory and list: you might go shopping, make some good purchases, spend the money you had allocated, but then 2 weeks later discover that you still need two pairs of jeans! To meet that need, you would exceed your planned spending, leaving you short on funds for something else, such as groceries or gas.
Plan ahead, so you can use the annual Sales Tax Holiday to your advantage! ~ Barb