Back-to-School Tax Holiday Kicks off
July 30| By: Navajo Post staff writer
ALBUQUERQUE –As New Mexico school boys and girls head back to school, parents will enjoy the eighth annual back-to-school tax holiday.
New Mexico Governor spiced up the niche, while speaking to a crowd of shoppers at the Coronado Mall in Albuquerque early Monday, she hopes it will help student and Teachers buy school supplies.
“The beginning of the school year is an exciting time for parents, students, and teachers, but buying new supplies can also be a financial challenge,” said Governor Martinez. “During these difficult times, the tax holiday will provide some relief to New Mexicans as they prepare for the school year. Getting our children the supplies they need is an important part of ensuring their success in the classroom.”
In recent years, New Mexico families and teachers have saved money on supplies as they prepare for the upcoming school year.
According to the Gov office, From 12:01 a.m. on Friday, August 3 until midnight on Sunday, Aug. 5, 2012, retailers will not collect gross receipts taxes on numerous items, such as school supplies, clothing and shoes, and computers and computer equipment.
Retail sales during the three-day tax holiday are estimated to increase by up to $25 million statewide with New Mexico families pocketing a savings of $4 million.
Non-taxable items include:
- Clothing and footwear $100 and under
- School supplies such as pens, paper, and other items typically used in a classroom setting $30 and under
- Computers $1,000 and under
- Assorted computer equipment $500 and under
Price limits are for each item – not the total amount spent for all purchases.
During the tax holiday, the law provides a deduction from gross receipts on qualifying items, effectively allowing retailers to sell the items “tax free.” Anyone can take advantage of this program to purchase qualifying items.
For more information on the legislation, definitions, types of sales, rain checks, exchanges, refunds, gift cards, layaways, online orders, mail orders, and telephone sales, please see the Tax Holiday section on the Taxation and Revenue Department web site.