This year, more than a dozen states are hosting tax free weekends, or sales tax holidays. These events give shoppers prime opportunities to avoid paying sales tax on Back to School essentials, and even Energy Star and emergency prep items in some cases, as well.
New Mexico is one of several states that's hosting a tax free weekend in early August. Check out our guide below to learn what items will be eligible and when you can shop.
When Is the New Mexico Tax Free Weekend in 2020?
This year, the New Mexico Gross Receipts Tax Holiday will be held from August 7 to August 9. Like other states, New Mexico will start the event at 12:01 am local time that Friday and conclude it at midnight on the following Sunday.
What Items Qualify for New Mexico Tax Free Shopping?
A handful of categories will qualify for gross receipts tax exemption during the Land of Enchantment's tax free weekend:
- Clothing and footwear: Less than $100 per item
- Computers: Less than $1,000 per item
- Computer-related hardware: Less than $500 per item
- School supplies: Less than $30 per item
- Backpacks: Less than $100 per item
School supply limits depend on the type of item purchased. For instance, most standard school supplies must be less than $30 to qualify for gross receipts tax exemption, but backpacks must be less than $100 each, and calculators must be less than $200 each. Check out the full breakdown of taxable and nontaxable items here.
What Items Aren't Eligible for New Mexico Tax Free Status?
Like other states, New Mexico doesn't exempt most accessories, including jewelry; sports equipment; and protective gear. If you have any doubts about whether something will qualify, be sure to check the full list.
More New Mexico Tax Holiday Tips
Online sales will qualify as long as they're paid for and delivered during the NM tax free weekend. They're also exempt if the shopper pays for the order and the order is received by the seller during the event.
Furthermore, the New Mexico Taxation and Revenue Department states that "receipts from qualified sales of tangible personal property made with a rain check issued during the term of the tax holiday are deductible from gross receipts." However, it also clarifies that rain-check sales made outside of the tax free weekend, regardless of when the rain check is issued, will be taxed as normal.
The state tends to be pretty specific about what's allowed and what isn't during the tax free weekend. If you need more information, see the Taxation and Revenue Department's PDF of regulations.