New Mexico Gives Additional Instructions on Tax Holiday

New Mexico issued an interpretation of its annual sales tax holiday. For example, items normally sold as a unit cannot be priced separately and sold individually to qualify for exemption. Items bought with a rain check during the holiday period will be deductible if supported with a receipt. Further, layaway plans trigger a sale only when the last payment is made on the item and it is delivered to the customer. Additionally, exchanges made on items purchased tax exempt during the holiday are not subject to tax provided there is no charge for the exchanged item. Finally, purchases of items made on the internet delivered to a customer with a New Mexico billing and shipping address during the holiday are deductible. (Title 3, Chapter 2, Part 242)

Posted on May 25, 2006