New Mexico’s back-to-school tax-free weekend arrives after many students have started school

ALBUQUERQUE, NM — House Bill 130 now requires all school districts to have 180 instructional days in a school year. Many school districts – like APS, Rio Rancho, Belen and Los Lunas – have all moved up their start dates to ensure they have enough days this year.

Thus, school now starts before the tax-free weekend, which is intended for the start of school.

“Well, the back-to-school tax-free weekend is set by statute, and the statute calls for it to be the first weekend in August, so that’s why it’s when it is, because that’s how the legislature has set it up,” said Charlie Moore of the New Mexico Taxation and Revenue Department.

The tax-free weekend was created in 2005. The tax and revenue department cannot change the date – that would be up to lawmakers.

“It would be a pretty simple law change right now,” Moore said. “It’s set as the first weekend in August, so they just had to set the date differently.”

A spokesman for House Democrats told KOB 4 there is nothing proposed at the moment, but they would be willing to adjust the dates for the tax-free weekend next session.

BACK TO SCHOOL TAX FREE HOLIDAYS

The annual New Mexico Gross Receipts Tax Holiday is coming soon to a retail store near you. If you have school-aged children, it’s nothing short of a bonanza. That weekend, the state suspends the collection of gross receipts tax on the sale of qualifying goods, so you can buy the goods tax-free. Because many merchants also absorb the tax on a number of non-qualifying items, you’re the beneficiary all the way around.

The tax holiday starts at 12:01 a.m. Friday 4 August 2023 and ends Sunday 6 August 2023 at midnight.

During that time, the law provides a gross receipts deduction for retail sales of qualified tangible personal property; in effect, the retailer allows the goods to be sold “duty free”.

FYI-203, Gross Income Tax Holiday contains one list divided into categories, but be aware that within some categories there is a set dollar maximum. To qualify for the deduction, clothing or shoes must be priced at less than $100 per item. unit. The price limit for desktops, laptops, tablets or laptops is $1,000 and for related computer hardware it is $500. School supplies for use in general education classrooms must be under $30 per unit. There are items specifically excluded by law in all categories. These goods are always taxable.

For more specific information on legislation, definitions and types of sales, (rain checks, exchanges, refunds, gift cards, layaways, internet, mail order and telephone sales) Click here.