New Mexico Tax Holiday 2014
This year’s New Mexico Tax Holiday starts on Friday, August 1, and ends at midnight on Sunday, August 3, 2014. During this gross receipts tax holiday, you will not be charged sales tax on a wide variety of items, which 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 these two PDF files:
- New Mexico Tax Holiday general overview
- 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.
Hence I’m giving you the heads-up: If you’re planning a remote camping trip to the mountains, DON’T do it on the weekend of August 1 to 3, 2014!
Retailers across the city will be participating in the New Mexico Tax Holiday, but if you have any doubts about what is or is not included in the 2014 Tax Holiday, ask in stores before you begin shopping.