New Mexico Sales Tax

1. Clothing and footwear items – less than $100 per item (excluding accessories, athletic or protective clothing or footwear)
2. School supplies – less than $30 per item
3. Computers, e-readers that have computing functions, and tablets – $1,000 or less per item
4. Certain computer related items – $500 or less per item
5. Book bags, backpacks, maps and globes – less than $100 per item
6. Handheld calculators – less than $200 per item

NOTE: Retailers are not required to participate.

Receipts from the retail sale of tangible personal property if the sale of the property occurs during the period between 12:01 a.m. on the first Saturday after Thanksgiving and ending at midnight on the same Saturday (7-9-116)

• Requirement: the sale must be made by a seller that carries on trade or business in New Mexico, maintains its primary place of business in New Mexico, has employed no more than ten employees at any one time during the previous fiscal year, and the business must not be a franchise.
• Requirement: this deduction applies only to receipts from sales of the following items:
  • the item is less than $500 and;
  • the sale is for:
    • clothing, footwear, accessories (jewelry, handbags, book bags, luggage, wallets, etc.) sporting goods and camping equipment;
    • tools used for home improvement, gardening and automotive maintenance and repair;
    • books, journals, paper, writing instruments, art supplies, greeting cards and postcards, work of art (photograph, sculpture, pottery, carving, textile, basketry, artifact, etc.)
    • floral arrangements and indoor plants;
    • cosmetics and personal grooming items;
    • musical instruments;
    • cookware and small home appliances for residential use, bedding, towels and bath accessories, furniture;
    • a toy or game that is a physical item, product or clearly intended and designed to be used by children or families at play; a video game or video game console and any associated accessories for the video game console; or home electronics, tablets, stereo equipment and related electronics.

NOTE: special reporting is required for this deduction, see instructions for completing the Form TRD-41413, Gross Receipts Tax Return in the GRT Filer’s Kit on our web site at http://www.tax.newmexico.gov/forms-publications.aspx. This deduction will be reported by using the special business location code of D0-020 on the Form TRD-41413, Gross Receipts Tax Return.

NOTE: You can locate more information on what specific items are deductible in bulletin B-200.31 Small Business Saturday Gross Receipts Tax Holiday.

NOTE: This deduction is currently for receipts that fall on small business Saturday for starting calendar year 2018 until year 2025.

Individual and Business Taxes

The Department will use the following criteria, as a guideline, to determine program eligibility:

• The taxpayer demonstrates a willingness and ability to comply with New Mexico’s tax laws;
• The taxpayer demonstrates an acceptable system of internal controls and business records (for most taxpayers, this may be income identified on the federal return and/or business income in New Mexico);
• The taxpayer’s resources are available to conduct the income disclosure

More details.