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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Jul 29, 2001
Page
12
A two day sales tax holiday exempts no tax on clothing and footwear under 100 dollars from 12:01 a.m. Aug 3 through midnight Aug 4. Watches jewelry umbrellas and athletic apparel are excluded. Manufacturers coupons cannot drop price below 100 to qualify while store discounts can. Rebates do not affect the sale price.
The Iowa Department of Revenue and Finance clarifies that exchanging an eligible item after Aug 4 is tax free if the exchange is for the same item. If the original item is purchased during the exemption period and later returned for a credit toward a different item, tax applies to the full price of the new item.
An Iowa sales tax holiday on clothing under 100 dollars ran August 3 and 4, yielding 31.1 million dollars in eligible clothing sales and saving 1.6 million in tax. Retailers anticipate added boosts from tax rebates and federal checks, with stores training clerks and expanding back-to-school promos to handle crowds.
Iowa officials say the tax holiday gears up retailers for the back-to-school season as the second busiest period of the year. Trumbull and Munger note it will give retailers something to smile about amid summer activity. Contact James Lynch for details.
Dan Gable, longtime wrestling great and Iowa athletic leader, decided not to run for governor. Republicans Chip Larson Jr and other state leaders noted family priorities and suggested a future bid could reemerge. Vilsack leads in 2002 planning as party fields Sukup and Vander Plaats.
An alphabetical inventory outlines representative tax exempt items for August 3 and 4. The list spans clothing categories from adult diapers and athletic wear to formal garments and religious attire. It includes accessories like hats belts and scarves and footwear from boots to sandals.
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