Home News Local News Tax-free holiday weekend gives a break to back-to-school shoppers

Tax-free holiday weekend gives a break to back-to-school shoppers

0

Copyright © 2021 Roswell Daily Record

Parents and youth looking to buy clothes, backpacks and school supplies can get a break on taxes.

New Mexico’s annual tax-free holiday started at 12:01 a.m. Friday and continues until midnight Sunday, according to the New Mexico Taxation and Revenue Department website.
The tax-free weekend allows consumers to purchase qualifying goods without paying the usual gross receipts sales taxes, which vary from city to city in the state. In Roswell, the current tax rate is 7.6875 percent, meaning that consumers pay $7.69 for every $100 of taxable goods purchased. The rate for Lake Arthur is 6.8125 percent. It is 7.5 percent in Hagerman and 7.3125 percent in Dexter.

Tax-free goods are generally those considered to be appropriate for back-to-school needs. They include shoes, clothes, educational-related electronics and school supplies. Specialty articles such as athletic or performance equipment, fashion accessories, cosmetics or entertainment-related electronics generally are taxable.
Maximum prices are also established for some goods. For example, individual clothing items need to cost less than $100 to qualify for the tax exemption, while computers must cost less than $1,000. Individual school items need to be less than $30, with some exceptions for calculators and other items.
More information is available from the state Taxation and Revenue website, taxnewmexico.gov.