Aug. 2—New Mexicans statewide may be able to save as much as 9% on many purchases this weekend during the annual back-to-school gross receipts tax holiday.
According to a news release from the state department of taxation and revenue, businesses can deduct the sales of a wide variety of merchandise made between 12:01 a.m. on Friday and midnight on Sunday.
During the weekend, the state suspends collection of gross receipts tax on sales of qualifying items. Many merchants also absorb the tax on a number of non-qualifying items.
The gross receipts tax in New Mexico ranges from 5% to more than 9%, depending on location.
Internet-based sales of qualifying merchandise are eligible for the deduction.
Retailers are not required to participate.
"At a time when many New Mexicans are struggling with higher prices, this is a great opportunity for New Mexicans to save some money on clothes and other things they need for their families," Taxation and Revenue Secretary Stephanie Schardin Clarke said.
Among the merchandise that can be sold tax-free this weekend are clothing and shoes priced at less than $100 per unit, computers priced under $1,000 and related computer hardware priced under $500.
School supplies under $30 per unit for use in standard, general-education classrooms also qualify.
Karl Terry, executive director of the Roosevelt County Chamber of Commerce, said it's going to be "important for folks to save a little bit" with the tax-free weekend.
"It's going to be even more important this year with inflation and tight budgets," Terry said.
"It does help people shop locally," Gizelle Ward said of the tax-free weekend. Ward owns GW Boutique in Clovis. "It gives a shot in the arm to local businesses."
Leslie Creighton of Creighton's Town and Country in Portales sees the tax-free weekend as a way to keep shoppers in their hometowns.
"I used to think we lost business to Texas," Creighton said. "But with COVID I think more people are shopping local than ever before."
Creighton said the tax-free weekend has been going on for a while and she believes the public has come to expect it.
"We love to utilize the tax-free weekend along with other store sales to incentivize people to stay home and shop," Creighton said.