Sales tax exemption promises shopping mania
Annual event set for Friday and SaturdayBy BILL SHEA, Messenger staff writer
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The annual chance to buy clothes without paying any sales taxes has traditionally packed area stores, and merchants are betting on more of the same this year despite a steady drumbeat of gloomy economic news.
''We're preparing for a strong weekend,'' said Steven Taylor, manager of JCPenney in Crossroads Mall. ''We feel they're going to be out shopping.''
Ron Birkestrand, president of the Osweiler's chain of women's clothing stores with locations in Algona, Fort Dodge, Storm Lake and Webster City, said the sales tax exemption always has a strong positive effect on sales. He said worries about the economy haven't hit the clothing business so far, and he's expecting lots of activity Friday and Saturday.
On those days, any clothing and shoes that cost less than $100 will be exempt from state and local sales taxes.
In Fort Dodge, that means the 6.5 percent sales tax won't be levied on those items. The local sales tax rate includes 5 percent for the state, the 1 percent statewide tax for school infrastructure and the half percent city tax for streets.
Knocking 6.5 percent off the cost of qualifying clothes and shoes may not seem like enough to bring shoppers flocking to stores. Retailers, however, sweeten the deal even more with their own markdowns.













