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New Mexico August 2014 Sales Tax Holiday


 Exempt during New Mexico's gross receipts tax holiday.

New Mexico offers an annual sales tax holiday from the first Friday in August until the following Sunday at midnight. This year, the tax free period begins at 12:01 a.m. August 1 and concludes at midnight, August 3.

It’s actually a gross receipts tax holiday, providing a “deduction from gross receipts for retail sales of qualifying tangible personal property.” This effectively permits retailers to sell items tax free.

Items eligible for the exemption include clothing, footwear, computers and school supplies. Certain price restrictions apply.

Exempt clothing, footwear and accessories

Eligible clothing, footwear and accessories must cost less than $100 per item (or pair) in order to qualify for the exemption. An eligible item costing more than that amount is subject to tax. Eligible items include but are not limited to:

  • Choir and alter clothing
  • Cowboy boots and coveralls
  • Diapers
  • Garters and girdles
  • Lingerie and leotards
  • Sweaters and sweatpants
  • Ties and tights
  • Undergarments and underwear

Exempt school supplies

Most school supplies must cost less than $30 to qualify for the exemption. However, there are a number of exceptions. For example, computers may cost up to $200, and maps and globes may cost up to $100. Eligible items include but are not limited to:

  • Book bags and book covers
  • Chalk and chalkboard erasers
  • Colored pencils and crayons
  • Data storage devices
  • Notebooks and notebook filler paper
  • Pencils and pencil sharpeners
  • Staples and staplers

Exempt computers and computer related items

Computers costing less than $1000 and computer related items costing less than $500 are exempt. Eligible items include but are not limited to:

  • Computer keyboards
  • Computer monitor
  • Computer speakers
  • Printer paper

The New Mexico Taxation and Revenue Department provides detailed information about how to handle the tax free period, from layaway sales and deliveries to exchanges and returns. It’s worth a read.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.