Governor Kicks Off Tax-Free Weekend

GRT Exemption Makes it Easier for Families and Teachers to Purchase Back-to-School Supplies

ALBUQUERQUE – Governor Susana Martinez visited the Coronado Mall to announce the state’s eighth annual back-to-school tax holiday that will help New Mexico families and teachers save money on supplies as they prepare for the upcoming school year. From 12:01 a.m. on Friday, August 3 until midnight on Sunday, Aug. 5, 2012, retailers will not collect gross receipts taxes on numerous items, such as school supplies, clothing and shoes, and computers and computer equipment.

“The beginning of the school year is an exciting time for parents, students, and teachers, but buying new supplies can also be a financial challenge,” said Governor Martinez. “During these difficult times, the tax holiday will provide some relief to New Mexicans as they prepare for the school year. Getting our children the supplies they need is an important part of ensuring their success in the classroom.”

Retail sales during the three-day tax holiday are estimated to increase by up to $25 million statewide with New Mexico families pocketing a savings of $4 million.

Non-taxable items include:

– Clothing and footwear $100 and under

– School supplies such as pens, paper, and other items typically used in a classroom setting $30 and under

– Computers $1,000 and under

– Assorted computer equipment $500 and under

Price limits are for each item – not the total amount spent for all purchases.

During the tax holiday, the law provides a deduction from gross receipts on qualifying items, effectively allowing 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, online orders, mail orders, and telephone sales, please see the Tax Holiday section on the Taxation and Revenue Department web site at www.tax.newmexico.gov