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 more information about this sales tax holiday, please visit the New Mexico Taxation and Revenue Departments’ website page.