NM Shoppers Can Buy Some Goods Tax-Free This Weekend
SANTA FE (AP) – This weekend’s tax holiday will allow New Mexico residents to buy some clothing and other goods tax-free.
The tax holiday runs from Friday through Sunday. No gross receipts tax will be imposed on clothing and some shoes under $100. Also tax-free are purchases of computers costing $1,000 or less and computer hardware of $500 or less, such as printers and monitors.
No tax will be levied on purchases of school supplies that cost up to $15, such as pens, paper, backpacks and lunch boxes.
During last year’s three-day tax holiday, buyers saved an estimated $3 million to $5 million by not paying state and local taxes on their purchases.
The tax-free shopping isn’t limited to shoppers with school-age children. Any individual can benefit if they buy items covered by the tax holiday. The list of tax-free goods also includes wedding dresses, tuxedos and adult diapers.
Paul Gessing, President of the Rio Grande Foundation, a tax policy think-tank, said, “Clearly those [items] are not appropriate for a tax holiday for back to school.” But Libby Gonzalez, Director of New Mexico’s Department of Taxation and Revenue: Revenue Processing Division says, “We don’t know if someone is NOT going to use a wedding dress or a tuxedo for a school activity. We can’t judge that.”
Gonzalez confirmed with ABC-7, “We also have special-needs children who may require adult diaper undergarments, we don’t know that, so we can’t prevent those children from buying those things. One other thing to keep in mind is that the clothing items still must fall within the $100 guidelines, that’s important.”
