Iowa's Sales Tax Free Holiday: Good Deal?

Iowa’s Tax-Free Weekend:
If you have kids in Iowa, you probably know that Iowa’s tax-free weekend always begins the first Friday in August. For 2024, the shopping holiday will start at midnight on Friday, August 2, and run through Saturday, August 3. Businesses in Iowa are required to participate if they are open during these days.

Chris and Sarah examine the merits of Iowa’s sales tax-free weekend. Economists and public finance scholars generally agree that a well-structured sales tax should extend to all final consumer purchases, whether goods or services, to build a solid sales tax base. Each exemption erodes that base, often delivering political benefits and little else. Exempting certain goods and services from taxation is a direct example of the government “picking winners and losers.”

Looking Ahead to Property Tax Reform:
Chris and Sarah also discuss the upcoming months and the focus on property tax reform. There will be levy increases on the September ballot in some jurisdictions. On the general election ballot in November, there will be county supervisor elections and bond questions, with the local budget process beginning shortly after that.

They highlight the importance of understanding the implications of these local elections and the potential impact on property taxes. The discussion touches on how local government spending drives taxation and the need for continuous reforms to ensure fiscal responsibility and taxpayer protection.