New Mexicans can save 8% or more on purchases

SANTA FE – Gov. Michelle Lujan Grisham is encouraging New Mexicans to take advantage of the upcoming Back-to-School Tax-Free Weekend, which 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 between 12:01 a.m. 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 location. Internet-based sales of qualifying merchandise are eligible for the deduction. Retailers are not required to participate.

“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,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.

Among the merchandise that can be sold tax-free this weekend is 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.