Happy Sales Tax Holiday
This weekend is a sales tax holiday in Iowa. This annual event means that thousands of families across Iowa, eager to save on their back-to-school supplies, will travel to the malls, fill their carts with apparel that is tax exempt this weekend only. They’ll then abandon their carts when they see the lines for checkout extend deep into the store, and realize there’s no way they’ll navigate to the front of the line to pay for said apparel before the weekend ends.
I usually avoid the stores on these holidays for many reasons. The aforementioned lines are a good reason. The only thing toddlers find more boring than shopping for clothes is standing in line to purchase said clothes. Combining a lengthy shopping expedition with a lengthy wait in line is a good way to induce screaming children, and although that may compel those ahead of me to trade places in line, I’d rather pay the sales tax on another weekend and get in and out quickly.
More importantly, I avoid the stores because the event feels like a gimmick. Sales tax in our area is 7%. While I’ll happily clip a coupon for $.25 off a $6 bottle of laundry detergent, saving 7% off a clothing bill isn’t enough to draw me to a store, especially since much of that 7% supports the school in “back-to-school.”
The event amounts to a state-subsidized sale for the retail industry. Stores might offer deeper discounts on top of the sales tax cut, or they might not; they certainly don’t have to cut prices to draw shoppers. If I want to save money,* I’ll wait until after the sales and buy things off the clearance racks, or better yet, buy things used.
It infuriates me to see what is and isn’t on the list of tax-exempt items. Clothing under $100 is exempt. That’s great, but Minnesota exempts those items year-round, and if those Canucks can figure out how to do that, surely Iowa can. Beyond that, certain things that would seem necessary for going to school are still taxed, while some less necessary items are exempt. Pens and pencils are taxed. Shoes are exempt. Shoes with cleats are taxed. Lingerie is exempt. Crayons are taxed. Gloves for work, garden, or warmth are exempt. Gloves for sports are taxed. Uniforms for school, work, or scouting are exempt. Uniforms for sports are taxed. Golf clothing is exempt, except of course the gloves.
A couple days ago, I noticed a new exempt item: Diapers. This struck me as silly. School-age children don’t use diapers. Clearly this is pandering to a public who simply wants to tack one more illogical item on the list of tax-exempt back-to-school goods.
Naturally, we bought diapers yesterday. We stocked up on four boxes from the big box store where nothing ever goes on sale so I know I saved money. I grabbed a package of socks for myself while I was there. The best part was there was no line at the registers because everyone was at the malls.
* I do.
I usually avoid the stores on these holidays for many reasons. The aforementioned lines are a good reason. The only thing toddlers find more boring than shopping for clothes is standing in line to purchase said clothes. Combining a lengthy shopping expedition with a lengthy wait in line is a good way to induce screaming children, and although that may compel those ahead of me to trade places in line, I’d rather pay the sales tax on another weekend and get in and out quickly.
More importantly, I avoid the stores because the event feels like a gimmick. Sales tax in our area is 7%. While I’ll happily clip a coupon for $.25 off a $6 bottle of laundry detergent, saving 7% off a clothing bill isn’t enough to draw me to a store, especially since much of that 7% supports the school in “back-to-school.”
The event amounts to a state-subsidized sale for the retail industry. Stores might offer deeper discounts on top of the sales tax cut, or they might not; they certainly don’t have to cut prices to draw shoppers. If I want to save money,* I’ll wait until after the sales and buy things off the clearance racks, or better yet, buy things used.
It infuriates me to see what is and isn’t on the list of tax-exempt items. Clothing under $100 is exempt. That’s great, but Minnesota exempts those items year-round, and if those Canucks can figure out how to do that, surely Iowa can. Beyond that, certain things that would seem necessary for going to school are still taxed, while some less necessary items are exempt. Pens and pencils are taxed. Shoes are exempt. Shoes with cleats are taxed. Lingerie is exempt. Crayons are taxed. Gloves for work, garden, or warmth are exempt. Gloves for sports are taxed. Uniforms for school, work, or scouting are exempt. Uniforms for sports are taxed. Golf clothing is exempt, except of course the gloves.
A couple days ago, I noticed a new exempt item: Diapers. This struck me as silly. School-age children don’t use diapers. Clearly this is pandering to a public who simply wants to tack one more illogical item on the list of tax-exempt back-to-school goods.
Naturally, we bought diapers yesterday. We stocked up on four boxes from the big box store where nothing ever goes on sale so I know I saved money. I grabbed a package of socks for myself while I was there. The best part was there was no line at the registers because everyone was at the malls.
* I do.
posted by Matt at
11:17 PM
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