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It is that time of year again for the New Mexico Annual Tax Holiday.
The dates are Aug. 3-5 and it is a good time to purchase school supplies and clothing without paying tax.
The New Mexico Legislature established a deduction from gross receipts tax for retail sales of tangible personal property in 2005 and has continued it each year the first weekend in August.
This is possible because the retailers can deduct the gross receipts tax during this period and therefore can pass the savings onto you for a weekend of tax-free shopping.
The tax rate for Los Alamos is 7.3125 percent while Santa Fe City has a tax rate of 8.1875 percent.
It is important to understand that only certain items are tax-free. Clothing or shoes sold for less than $100 are tax-free, while athletic equipment will still be taxable.
The biggest savings might come from purchasing a desktop, laptop, notebook, or tablet computers that cost under $1,000 and any related monitor, speakers, printer, keyboard, microphone, or mouse sold for no more than $500. General school supplies that are used in standard classroom for educational purposes are tax free.
These include notebooks, paper, writing instruments, crayons, art supplies, and rulers; as long as it is under $30 per item. Book bags, backpacks, maps and globes are tax free if under $100 and handheld calculators if under $200.
This tax free holiday does not apply to watches, radios, CD players, headphones, sporting equipment, copiers, office equipment, furniture or fixtures. This is a great opportunity for savings if you are planning on purchasing Back to School clothes and supplies. For more information or a complete list of tax free items visit the New Mexico Tax and Revenue Department website at tax.newmexic.gov.
Also, watch for the Back to School special section in the Los Alamos Monitor Wednesday, Aug. 1. The section will be packed with information for the new school year along with shopping opportunities for the tax free weekend.