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Iowa tax-free weekend gives shoppers a break as budgets get tighter

Iowa's sales tax holiday runs Friday and Saturday, exempting clothing and shoes under $100; some local businesses are sweetening the deal with extra discounts.
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COUNCIL BLUFFS, Iowa (KMTV) — Iowa shoppers can save on clothing and shoes — and a few other qualifying items — this weekend as the state's annual sales tax holiday runs Friday and Saturday. Any item priced under $100 is exempt from Iowa sales tax statewide.

Related | Iowa's back-to-school tax holiday: Is the two-day break on clothes and shoes worth it?

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Iowa tax-free weekend: Save on clothes and shoes this Friday and Saturday

At Dusted Charm in Council Bluffs, manager Katelyn Kennedy said the store is offering an additional 15% off, both in-store and online, to give shoppers extra incentive to buy.

The timing comes as many family budgets are under pressure. Costs for groceries, rent and gasoline have climbed, with gas prices up 26% over last year, according to the Bureau of Labor Statistics.

Kennedy says those financial pressures are showing up on the sales floor, with customers buying fewer items than they used to.

"Especially on event days like this, or bigger incentive days like this, people go from buying three or five pieces to essentially coming down and only buying one or two. Or not even being able to shop," she said.

Staff at Dusted Charm also say events like the tax-free holiday serve as a reminder that spending money at locally owned businesses helps reinvest dollars back into the community.