H.F. 2430 Section 1. Section 423.3, subsection 68, paragraph a, Code 1 2016, is amended to read as follows: 2 a. The sales price from the sale of an article of clothing 3 designed to be worn on or about the human body if all of the 4 following apply: 5 (1) The sales price of the article is less than one hundred 6 dollars. 7 (2) The sale takes place during a period beginning at 12:01 8 a.m. on the first Friday in August and ending at midnight on 9 the following Saturday . 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill exempts the purchase of clothing from the sales 14 tax. Under current law, an article of clothing is only exempt 15 from the sales tax if the sales price is less than $100 and if 16 the sale takes place during the first weekend in August of each 17 year. The bill strikes these requirements and provides that 18 any sale of clothing is exempt from the sales tax. “Clothing” 19 and other related terms are currently defined under Iowa law in 20 Code section 423.3(68). 21 By operation of Code section 423.6, an item exempt from the 22 imposition of the sales tax is also exempt from the use tax 23 imposed in Code section 423.5. 24 -1- LSB 5925YH (2) 86 mm/sc 1/ 1