New Mexico Tax Holiday 2013: Friday Through Sunday

August 2, 2013 by  
Filed under Kids, Shopping

New Mexico Tax Holiday A reminder that this year’s New Mexico Tax Holiday starts on Friday, August 2, and ends at midnight on Sunday, August 4, 2013. I posted about this before, but if you missed it, here’s the recap.

During this gross receipts tax holiday, you will not be charged sales tax on a wide variety of items, which is especially helpful for parents as it makes back-to-school shopping a little more affordable!

As with any legislation, the rules are somewhat complex. Basically, the following items are exempt from the state’s gross receipts tax during the New Mexico  tax holiday:

  • Clothing or shoes priced less than $100 per unit/per pair
  • Desktop, laptop, or notebook computers, including tablets, priced less than $1,000
  • Other computer hardware priced under $500 (such as a printer, mouse, keyboard, monitor, microphone, speakers, ink cartridges etc.)
  • School supplies priced under $30 per unit
  • School backpacks priced less than $100 per unit
  • Handheld calculators under $200 per unit

Note that PDAs, iPods and all MP3 players, games including computer games, and musical instruments are specifically excluded. (That is, these items are taxable.) Also swimwear is excluded and any specialist footwear that someone wouldn’t wear in the street, such as ski boots.

There are many sub-categories in the eligible items, so to see what’s taxable and nontaxable, check out this PDF file giving New Mexico Gross Receipts Tax Holiday detailed listings of all items.

In Albuquerque, where the gross receipts tax rate is 7%, that means you can save $70 on the purchase of a $1,000 laptop computer. Another example might be a family with four kids, each requiring $250 worth of clothing, shoes, and school supplies. They also would save $70 by not paying sales tax. That’s a big shopping saving, just by buying on the right weekend.

Retailers across the city will be participating, and sometimes they give you a tax break even on items not officially covered by absorbing the gross receipts tax themselves. But if you have any doubts about what is or is not included in the 2012 Tax Holiday, ask in stores before you begin shopping.

–Tania


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