New Mexico Holds Back to School Sales Tax Holiday

New Mexico will hold a sales tax holiday (also known as the Gross Receipts Tax Holiday) on select clothing, school and art supplies, and computers August 3-5, 2018. New Mexico requires specified retailers to provide a deduction from gross receipts for retail sales of qualifying tangible personal property; in effect selling the items “tax free.” 

The law limits the tax-holiday deduction to receipts of retailers from sales of the following types of items:

  • 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, printers, keyboards, microphones or computer mice sold for no more than $500; and
  • School supplies students normally use in a standard classroom for educational purposes for $30 or less per item. (The law specifically lists notebooks, paper, writing instruments, crayons, art supplies, rulers, bookbags, backpacks, handheld calculators, maps and globes as deductible during the tax holiday.)

 For a comprehensive list of taxable and nontaxable items, please refer to New Mexico Bulletin B-200.18.

For more information about this sales tax holiday, the New Mexico Taxation and Revenue Departments’ website page and  FYI-203 Bulletin contains further detailed information.

 

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