(The Center Square) – New Mexico Governor Michelle Lujan Grisham is encouraging her state’s residents to capitalize on the upcoming Back-to-School Tax-Free Weekend.
From Friday, August 4, to Sunday, August 6, businesses can choose to deduct the sales tax of various items, selling them sales tax-free.
“I want the focus for New Mexico families to be on the excitement of the upcoming school year – not on worrying about which school supplies they can afford,” Lujan Grisham said in a press release.
Depending on the location sales taxes in New Mexico vary from 4.875% to nearly 9%.
Critics say tax holidays aren’t much of a boon to working families. “At the end of the day, sales tax holidays are gimmicky tax policies that deliver very little for most working families but have a large and growing cost to state and local budgets,” said Marco Guzman, Institute on Taxation and Economic Policy senior policy analyst. “Lawmakers who are genuinely interested in creating a fairer tax code have many better options to choose from than these temporary suspensions.”
Internet-based sales are eligible for the deduction. State law does not require retailers to participate in the tax-free weekend.
“This is a great opportunity for New Mexicans to save some money on clothes and other things they need for their families as children are heading back to school,” Taxation and Revenue Secretary Stephanie Schardin Clarke said.
The following items can be sold tax-free this weekend: clothing and shoes priced at less than $100 per unit, computers priced under $1,000, computer hardware priced under $500, and school supplies under $30 per unit.
New Mexico shoppers save about $5 million annually from the tax-free holiday weekend. More information on it is available here.
