Shoppers can enjoy some savings today and tomorrow with the return of Iowa’s annual sales tax holiday.

The holiday began at 12:01 a.m. today and will run until midnight tomorrow. During that time, no sales tax will be collected on most clothing and regular footwear under $100. Sales tax will continue to be collected on items that cost $100 or more.

Clothing does not include watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, skates and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.

Families with school-age children spend an average of nearly $700 annually on clothing and supplies as children prepare for to return to school, according to the National Retail Federation. Ninety-two percent of those surveyed said they will purchase clothing as part of back-to-school shopping.

Fort Dodge’s sales tax is 7%, which includes a penny per dollar to the city.

The program is now in its 20th year. Since it went into effect, retailers have generally offered additional incentives to seal the deal with customers.

Signed in 2000 by Gov. Tom Vilsack, the measure creating the tax break was written and spearheaded by former state Rep. Mike Cormack, a Republican who represented Fort Dodge from 1995 to 2002.

But even though the city of Fort Dodge misses out on a few bucks of sales tax revenue this weekend, the boost to the economy from the extra spending helps.

“Since we’re a regional retail center, people from rural areas come to Fort Dodge to shop,” said Vickie Reeck, community and economic development director for Fort Dodge. “Anytime somebody comes to Fort Dodge to shop retail, they do other things here.”