SANTA FE – Gov. Michelle Lujan Grisham is encouraging New Mexicans to take advantage of the upcoming Back-to-School Tax-Free Weekend, according to a news release from the office of the Governor. The weekend could save shoppers 8 percent or more on purchases.
“I want the focus for New Mexico families to be on the excitement of the upcoming school year – not on worrying about which school supplies they can afford,” said Gov. Lujan Grisham.
Businesses can choose to deduct the sales of various merchandise made on Friday, August 4, and midnight on Sunday, August 6. That allows them to sell qualifying merchandise tax-free. Many merchants also absorb the tax on non-qualifying items.
The Gross Receipts Tax in New Mexico ranges from 4.875 percent to nearly 9 percent, depending on the location. Internet-based sales of qualifying merchandise are also eligible for the deduction. However, retailers are not required to participate.
Taxation and Revenue Secretary Stephanie Schardin Clarke said, “This is a great opportunity for New Mexicans to save some money on clothes and other things they need for their families as children are heading back to school."
Among the merchandise that can be sold tax-free this weekend are clothing and shoes priced at less than $100 per unit, computers priced under $1,000, and related computer hardware priced under $500. School supplies under $30 per unit for use in standard, general-education classrooms also qualify.
The Taxation and Revenue Department estimates shoppers save about $5 million annually due to the tax-free holiday weekend.
More information is available here.