Tax-free weekend underway in NM

Tax-free weekend kicks off a three-day run Friday across New Mexico.

It’s a welcome holiday for many New Mexicans, especially college-aged adults and parents with children heading back to school.

The holiday, enacted in 2005, takes place the first weekend of August each year and allows people to purchase items including laptops, clothes and shoes without the addition of gross receipts tax.

New Mexico is one of 18 states with a tax-free holiday, according to a 2023 New Mexico Tax Expenditure Report. And businesses don't have to participate in the tax-free weekend, said New Mexico Taxation and Revenue Department spokesman Charlie Moore, though many do.

Computers, including desktops, laptops, notebooks and tablets, can be nontaxable so long as they are $1,000 or less, according to the department. Articles of clothing and shoes under $100 can also not be taxed, as well as school supplies like pens and binders if they're under $30 and backpacks if they are under $100.

The report from TRD estimated that in fiscal year 2021 — which would mean 2020's tax-free weekend — the holiday saved customers about $5 million in taxes across the state.

That will likely be the case again this year as well.