Sales-tax holiday weekend: A shopper's guide

The 12th annual sales-tax holiday, designed to give back-to-school shoppers a break, is Friday and Saturday.

• How it works: No sales tax, including local-option sales tax (6 percent total), collected on sales of clothing or footwear selling for less than $100.
• How much we save: Total savings to Iowa consumers this year is expected to fall between $3.5 million and $4.5 million.
• Why retailers like it: The back-to-school season already drives retail sales, and the tax holiday gives retailers an extra boost.
• Why retailers hate it: Interpreting the tax holiday rules can be confusing when it comes to calculating deals such as “buy one, get one free” and whether a manufacturer's coupon can be used to reduce the price of an item below $100.
• Why it defies logic: The list of taxable and exempt items seems to bear little relationship to back-to-school needs. Bridal apparel, for instance, is exempt, but backpacks and ponytail holders are taxable.
• How many participate: Eighty-one percent of surveyed parents indicated they would shop during their states' sales-tax holiday, according to a nationwide survey by Lands' End and Parents magazine.
• How Iowa compares: Many other states extend their sales-tax holidays to include school supplies and computers. Some even include books.
• What about online sales?: Online sales aren't taxed anyway, unless the online retailer has physical premises in the state.
• On the Net: List of taxable and non-taxable items: www.iowa.gov/tax/educate/STHList.pdf

Sources: Iowa Department of Revenue, Lands' End