New Mexico levies a gross receipts tax rather than a sales tax, so a more accurate title for the event would be the Small Business Saturday Gross Receipts Tax Holiday.
The two taxes are different, although consumers generally experience them the same (both are typically added to the sales price at checkout). Sales tax is a tax on a retail sale, not the business itself, while gross receipts tax is a tax on the privilege of making certain sales in the state.
During Small Business Saturday, participating retailers should deduct receipts from qualifying retail sales. Receipts for sales made by a business operating under a franchise agreement may not be deducted.
Businesses in New Mexico must report all deductions, including those claimed during Small Business Saturday. The Taxation and Revenue Department will publish instructions on how to claim deductions for Small Business Saturday prior to the event.
