New Mexico Tax Holiday Friday through Sunday
See our latest New Mexico Tax Holiday post for information on the 2013 tax holiday.
A reminder that the 2011 New Mexico Gross Receipts Tax Holiday starts this Friday, August 5, and ends at midnight on Sunday, August 7. We posted about this before, but if you missed it, here’s the recap.
During the tax holiday weekend, you will not be charged sales tax on a wide variety of items, which makes back-to-school shopping slightly more affordable!
As with any legislation, the rules are a little complex. Basically, the following items are exempt from gross receipts tax in New Mexico during the 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 $15 per unit
- School backpacks and calculators priced less than $100 per unit
Note that phones, PDAs, iPods and all MP3 players, games including computer games, and musical instruments are specifically excluded. (That is, these items are taxable.)
Get more details on what’s taxable and nontaxable in the PDF file on the NM Gross Receipts Tax Holiday page.
Since Albuquerque’s gross receipts tax rate is 7%, 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, but if you have any doubts about what is or is not included in the 2011 Tax Holiday, ask in stores before you begin shopping.