Sales Tax Holiday 2002
*On Select Clothing and Footwear*
and Saturday - August 2-3, 2002
yearly holiday is held the first Friday and Saturday of
August. The same guidelines and exemptions apply from year
to year unless changed by the Iowa Legislature.
Please be aware that...
is an annual event on the first Friday and Saturday of
holiday does not include Sunday.
that are open on these days are required to participate.
should not indicate in any way that they will pay or absorb
the sales tax on anything sold.
completing the tax return, list qualifying Sales
Tax Holiday sales on the "exemptions" line.
If you sell clothing or footwear in the State of Iowa, this
law may impact your business.
period: from 12:01 a.m., August 2, 2002, through midnight,
August 3, 2002.
sales tax, including school and local option sales
taxes, will be collected on sales of an article of
clothing or footwear having a selling price less than
exemption does not apply in any way to the price of
an item selling for $100.00 or more.
exemption applies to each article priced under $100.00
regardless of how many items are sold on the same
invoice to a customer.
means any article of wearing apparel and typical footwear
intended to be worn on or about the human body. "Clothing"
does not include watches, watchbands, jewelry, umbrellas,
handkerchiefs, sporting equipment, skis, swim fins, roller
blades, skates, and any special clothing or footwear designed
primarily for athletic activity or protective use and not
usually considered appropriate for everyday wear.
of items is available on our Web
In addition to taxable and exempt lists, you will find information
normally sold as a unit
containing both exempt and taxable items
one, get one free or for a reduced price
a tax-exempt purchase after August 3
an eligible item
rebates and discounts
Iowa Local Option Tax Jurisdictions
Effective July 1, 2002
School Infrastructure Local Option Sales Tax (SILO)
Voters in the following four Iowa counties have adopted
the 1 percent school local option sales tax effective
July 1, 2002.
County (03): 1%
County (49): 1%
County (78): 1%
- Union County
Note: This tax applies countywide. The tax is remitted
to the Iowa Department of Revenue and Finance with sales
tax returns. Our department then distributes it back to
the school districts within the county.
As of July 1, 2002, 23 counties with 191 school districts
will have passed the SILO.
Regular Local Option Sales Tax (LOST)
Voters in the following jurisdictions have adopted the
regular local option sales tax effective July 1, 2002.
The counties, county codes, and rates are listed in bold.
The bulleted items are incorporated cities in the county
and/or the unincorporated area.
Appanoose County (04): 1%
Hamilton County (40): 1%
Humboldt County (46): 1%
Lyon County (60): 1%
Taylor County (87): 1%
Repealed Effective June 30, 2002
Washington County (92): 1%
- West Chester
comprehensive file we have on regular and school local
option taxes is an Excel file. If you do not have Microsoft
Excel, you can download the free
Tax Return Mailings
This year the
department changed its mailing process. Instead of mailing
quarterly returns and monthly deposits four times each year,
we are mailing them only twice each year. This means that
permit holders receive two quarters of returns and/or deposits
in one envelope.
These forms are preprinted with your permit information.
Please be sure to use the correct form.
more information, check out our March
2002 eTax News .
Your sales tax
permit will arrive as a postcard. The information printed
on it is not confidential. Please keep it with your records.
If the information is incorrect, please update it on our
you suspect Iowa tax fraud?
You can contact
our department confidentially online to report
We investigate all leads to determine whether or not a person
or business should be contacted.
are cars and trucks taxed?
are subject to registration at a county courthouse are subject
to the motor vehicle use tax of 5 percent. This is not a
sales tax, and, therefore, local option taxes do not apply.
In addition, implements customarily drawn by or attached
to a registered vehicle are subject to the motor vehicle
use tax. This includes camping, boat, and livestock trailers.
bins and tanks
Grain bins that
are permanently installed are subject to sales tax. The
buyer of the building materials is responsible for paying
sales tax or use tax on those materials. The buyer is the
person who pays the vendor.
and lawn care
are taxable, depending on several factors. Find
out what it's all about (pdf).
on time saves money!
make any sales? Your return is still due! Fill in the
lines with zeroes, sign and send it. Our department
contacts businesses when returns aren't received. You'll
save time and tax dollars by sending in your zero returns.
The department mails returns to permit holders;
however, not receiving one is not a valid reason for not
filing. If the return due date nears and you have not received
a return from the department, obtain one online. You may
also photocopy a prior return, white out the old information,
and write in the new information. We also accept a sheet
of paper with all the relevant information.
Penalty and/or interest may apply if you fail to
file a return on time (or if you fail to pay the tax). Failure
to file a timely return: 10 percent penalty. Failure to
pay the tax: 5 percent penalty if less than 90 percent of
the tax was paid. Willful failure to file a return: 75 percent
of the tax due.
In addition, interest accrues from the due date
until paid. The interest accrues every calendar month, including
a fraction of the month.
filers may be required to post a bond under the following
Quarterly: two or more delinquencies in a 24-month
2. Monthly: four or more delinquencies in a 24-month
3. Semi-monthly: eight or more delinquencies in a 24-month
4. If the filer has made recurring tax payments with