STATE News:

• New Mexico Tax Holiday Saves Children and Families $4 Million in Preparing for Upcoming School Year

ALBUQUERQUE — Today, Gov. Susana Martinez encouraged New Mexico families to take advantage of the annual tax-free weekend, to save money and prepare their children with clothes and supplies to return to school this fall.

“We want our children to start this school year off on the right foot,” Martinez said. “This tax-free weekend helps our families save money on much–needed supplies and clothes, so that students will be prepared to get back in the classroom. Not only is this good for families and children, it also benefits New Mexico businesses, so this is a win-win for all New Mexicans.”

From 12:01 a.m. Friday until midnight on Sunday (August 1st through 3rd), retailers will not be required to collect gross receipts tax (GRT) from customers on certain back to school necessities, such as school supplies, computers, and clothing. This exemption will enable more New Mexico families to ensure that their children are well prepared to resume school this fall. New Mexico taxpayers could save as much as $4 million dollars throughout the state over the course of the weekend.

Non-taxable items include:

• Clothing and footwear $100 and under;
• School supplies such as pens, paper, and other classroom necessities $30 and under;
• Computers $1,000 and under;
• Various computer equipment $500 and under; and
• Price limits are for each item, not the total amount spent for all purchases.

The complete list can be viewed online here.

During the tax-free weekend, New Mexico law provides a deduction from GRT on such qualifying items, allowing retailers to sell the items without charging customers this tax. Anyone can take advantage of this program to purchase qualifying items throughout this weekend.

Martinez also recently announced programs to provide assistance to low-income and foster children for back to school needs. The annual children’s clothing allowance through the Human Services Department (HSD) provides a $50 payment per qualifying New Mexico child to purchase clothes for the upcoming school year. The allowance is part of the Temporary Assistance for Needy Families (TANF) program. HSD estimates they will help more than 15,765 low-income children at a cost of roughly $788,000.

The Children, Youth, and Families Department (CYFD) will provide $100 to foster families and providers for each foster child in their care that is three years old and above. The funding is to help foster families purchase back-to-school supplies. More than 1,700 foster children are preparing to go back to school.