Richardson announces tax holiday

SANTA FE – Governor Bill Richardson today announced the 5th Annual Back-To-School Tax Holiday to help New Mexico families save money on their back-to-school supplies. The tax holiday starts Friday, August 7th and will end at midnight Sunday, August 9th, 2009.

“Every year New Mexicans look forward to the back-to-school tax holiday and this year the anticipation is even higher as families struggle through the current economic climate,” Governor Richardson said. “The tax holiday is much needed-relief for families across New Mexico, allowing them to address their children’s back-to-school needs without breaking their budgets.”

“I would like to thank all retailers participating in this program because it not only makes good business sense but they’re also making a valuable contribution towards the education of our children,” State Taxation and Revenue Secretary Rick Homans said. “I encourage all parents to take advantage of this program and save the extra cash.”

Nontaxable items include: clothing and footwear $100 or less; school supplies such as pens and paper $15 or less 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 two computers tax-free as long as each computer did not exceed the $1000 limit per computer.

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 Gross Receipts Tax Holiday available on the Taxation and Revenue Department web site at www.tax.state.nm.us.