CHAMBER News:

New Mexico participates in an annual sales tax holiday, known as the “Back-to-School Sales Tax Holiday”. During this event, certain items, including clothing and footwear priced at less than $100 per item, are exempt from GRT. 

This means that businesses selling qualifying items during the tax holiday do not need to collect GRT on those sales. Keep in mind that there are specific guidelines for what qualifies as exempt clothing and footwear, so it’s essential to review the rules provided by the New Mexico Taxation and Revenue Department.

Sales tax holidays are put in place to encourage consumer spending by temporarily eliminating sales tax on certain retail purchases, like back to school shopping, to provide an economic reprieve for consumers on these necessities. 

Clothing or shoes priced at less than $100 per unit ($99.99 or less). However, accessories and special clothing or footwear primarily designed for athletic activity or protective use and not normally worn beyond the scope of the athletic activity or protective use remain taxable 

The price limit for desktop, laptop, tablets or notebook computers is $1,000, and for related computer hardware it is $500

School supplies students normally use in a standard classroom for educational purposes

For more information visit: Back to School Sales Tax Free Holiday