Governor Bill Richardson today kicked off the Sixth Annual Back-To-
School Tax Holiday that will help New Mexico families save money on school supplies for their kids. The tax holiday starts at 12:01 Friday morning and ends at midnight Sunday, Aug. 8, 2010.
"This weekend all New Mexico families can stock up on school supplies and save some much needed cash," said Governor Richardson. "This kind of savings is especially important to New Mexicans right now as many families are struggling to stretch a dollar more than ever before."
"This tax holiday is especially meaningful to a lot of New Mexico families and retail businesses that are struggling in these tough economic times," said Taxation and Revenue Secretary Designate Duffy Rodriguez. "It's a win-win situation both to boost retail sales in our state while helping families save money."
Nontaxable items include: clothing and footwear less than $100; school supplies such as pens and paper less than $15 that are typically used in a classroom setting; computers $1000 or less; as well as assorted computer equipment $500 or less. The price limits are for each item -- not the
total amount spent for all purchases. For example, a family could purchase three computers taxfree as long as each computer was less than the $1000 limit per computer. Also, a family could save $42 in taxes if they spend $600 on school clothes, and also save on additional items.
The tax holiday begins at 12:01 a.m. on Friday and concludes on Sunday at midnight. During that time the law provides a deduction from gross receipts on qualifying items in effect allowing the retailers to sell the items "tax free." Anyone can take advantage of this program to purchase qualifying items.
For more specific information on the legislation, definitions, types of sales, (rain checks, exchanges, refunds, gift cards, layaways, Internet, mail order and telephone sales) please see Tax Holiday available on the Taxation and Revenue Department web site at www.tax.newmexico.gov.