The New Mexico Taxation and Revenue Department (TRD) announced this year’s back-to-school tax holiday beginning at 12:01 a.m. on Friday, August 4, and ending at midnight on Sunday, August 6, 2023.
“Coming soon to a retail store near you is the annual New Mexico Gross Receipts Tax Holiday. If you have school-age children, it’s nothing short of a bonanza,” wrote TRD. “For that weekend the state suspends collection of gross receipts tax on sales of qualifying items so you can buy the items tax free. Because many merchants also absorb the tax on a number of non-qualifying items, you are the beneficiary all around.”
The press release from the Department noted, “To qualify for the deduction, clothing or shoes must be priced at less than $100 per unit. The price limit for desktop, laptop, tablets or notebook computers is $1,000, and for related computer hardware it is $500. School supplies for use in standard, general-education classrooms must be under $30 per unit. There are items specifically excluded by statute in all categories. Those items are always taxable.”
According to the details, “To qualify for the deduction, clothing or shoes must be priced at less than $100 per unit. The price limit for desktop, laptop, tablets or notebook computers is $1,000, and for related computer hardware it is $500. School supplies for use in standard, general-education classrooms must be under $30 per unit. There are items specifically excluded by statute in all categories. Those items are always taxable.”
“The law specifically excludes watches, radios, compact disc players, headphones, sporting equipment, portable desktop telephones, copiers, office equipment, furniture, or fixtures. The law does not consider such items to be school supplies that students normally use in a standard classroom. Sales of those items are taxable during the three-day period.”
For more details about the tax holiday, click here.