August 6th and 7th are sales tax holidays in Iowa and August 6th through 15th are sales tax holidays in Illinois. So, shoppers hurry up and rush to the stores to enjoy the benefits. Beware of the exceptions while availing the sales tax holiday benefits. 🙂
Sales Tax Holidays
Every year state government declare certain days as sales tax holidays. Businesses that are open on these are required to participate. However, the maximum cost for which the sales tax is free varies from State to State. The items for which the sales tax is exempted also vary. The sales will boost for businesses during this period at the same time, consumers can enjoy the benefit as well. Businesses can claim this exemption while filing the tax returns.
Illinois
Illinois has declared August 6th through August 15th as sales tax holidays. Five percent of the sales tax will be exempted on all school supplies, clothing, and footwear up to $100. School supplies are not subject to the $100 threshold however, if the product is not used by the student in the course of study, that item is not exempted. For example, crayons are exempted but not the paint brushes and other art supplies.
Iowa
Iowa has declared August 6th and 7th as sales tax holidays. However, the items under this exemption are clothing and footwear only up to $100. Manufacturer coupon do not reduce the sales price of an item. But, store coupon reduce. So, correspondingly tax is adjusted.
Watch out
Notice the following rules while purchasing during the sales tax holidays.
- The sales tax exemption is valid for goods exchanged at a later date as well. 🙂
- The tax exemption is valid for mail orders during that particular dates.
- Clothing or footwear for athletic or swimming do not receive the exemption.
- Returns after the tax holiday receive the corresponding tax credit, but not the new item purchased after the dates.
Iowa has complete sales tax off on clothing and footwear while Illinois has 5% sales tax off on clothing, footwear, and school supplies. Happy Shopping everybody. 🙂