New Mexico August 2014 Sales Tax Holiday
- Sales Tax News
- Jul 21, 2014 | Gail Cole
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
- 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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