Get ready for the 2022 New Mexico Back to School Tax Free Holiday
We are counting down to the annual New Mexico Gross Receipts Tax Holiday. For parents of school-age children, it’s a chance to purchase qualifying school supplies and other items tax free.
The state reports that many retailers also absorb the tax on merchandise that doesn’t quality for the tax free holiday. That means shoppers can score a double win.
The tax holiday begins at 12:01 a.m. on Friday, August 5, 2022, and concludes on Sunday, August 7, 2022, at midnight.
During that time the law provides a deduction for retail sales of qualifying purchases; in effect allowing the retailer to sell the items “tax free.”
According to the New Mexico information website, exempt items include:
Clothing or shoes sold for less than $100; however, accessories and special clothing or footwear primarily designed for athletic activity or protective use and not normally worn beyond the scope of the athletic activity or protective use remain taxable;
Desktop, laptop, notebook, or tablet computers sold for no more than $1,000, and any associated monitor, speaker or set of speakers, printer, keyboard, microphone, or mouse sold for no more than $500, and
School supplies students normally use in a standard classroom for educational purposes. The law specifically lists notebooks, paper, writing instruments, crayons, art supplies, rulers, book bags, backpacks, handheld calculators, maps, and globes as deductible during the tax holiday.
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.
FYI-203,Gross Receipts Tax Holiday contains a complete list divided into categories, but please note that within some categories there is a set dollar maximum. 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 items excluded by statute include:
E-readers that only have the ability to access the internet but that have no other computing functions such as word processing, spreadsheet capabilities, etc.;
Personal digital assistants (PDAs), MP3 players, cassette players and recorders, cameras, books, magazines, and other periodicals;
All computer and computer-related equipment not specifically listed by statute or regulation as deductible unless bundled with and included in the price of a deductible item within the price limits set by law;
All computer software unless bundled with and included in the price of a deductible item within the price limits set by law;
All games, including video games, board games, computer games, and handheld gaming devices;
Materials and equipment for making, repairing, or altering clothing; for example, cloth or other fabric, textile or material, thread, yarn, needles, buttons, zippers, and patterns;
Athletic and protective gloves, pads, supporters, and helmets;
Swimwear, cover-ups, and caps;
Specialized footwear not readily available for streetwear, including ski boots, riding boots,
For more specific information on the legislation, definitions, types of sales, (rain checks, exchanges, refunds, gift cards, layaways, Internet, mail order and telephone sales) please see FYI-203,Gross Receipts Tax Holiday.