Tax free holiday for school supplies set Aug. 3-5

New Mexico residents will be able to take advantage of the 3rd annual tax holiday, Aug. 3-5, according to a press release from the state’s Taxation and Revenue Department.

A family can save up to $42 in taxes if they spend $600 on school clothes and there are additional savings for computer purchases as well as school supplies, the release said.

Nontaxable items include: clothing and footwear $100 or less; school supplies such as pens and paper $15 or less that are typically used in a classroom setting; computers $1000 or less; as well as assorted computer equipment $500 or less.

The price limits are for each item – not the total amount spent for all purchases, the release said. For example, a family could purchase three computers tax-free as long as each computer did not exceed the $1,000 limit per computer.

Details on the tax holiday, including which items are excluded from gross receipts tax, can be found on the state’s Taxation and Revenue web site at www.state.nm.us/tax