BACK-TO-SCHOOL TAX HOLIDAY PRICE LIMITS

SB0118

SENATE BILL 118

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Harold Pope

AN ACT

RELATING TO TAXATION; INCREASING THE SALE PRICE LIMITS IN THE
BACK-TO-SCHOOL GROSS RECEIPTS TAX DEDUCTION BY FIFTY PERCENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 7-9-95 NMSA 1978 (being Laws 2005,
Chapter 104, Section 25, as amended) is amended to read:

"7-9-95. DEDUCTION--GROSS RECEIPTS TAX--SALES OF CERTAIN
TANGIBLE PERSONAL PROPERTY--LIMITED PERIOD.--Receipts from the
sale at retail of the following types of tangible personal
property may be deducted if the sale of the property occurs
during the period beginning at 12:01 a.m. on the last Friday in
July and ending at midnight on the following Sunday:

A. an article of clothing or footwear designed to
be worn on or about the human body if the sales price of the
article is less than [
one hundred dollars ($100)
]
one hundred
fifty dollars ($150)
except:

(1) any special clothing or footwear that is
primarily designed for athletic activity or protective use and
that is not normally worn except when used for the athletic
activity or protective use for which it is designed; and

(2) accessories, including jewelry, handbags,
luggage, umbrellas, wallets, watches and similar items worn or
carried on or about the human body, without regard to whether
worn on the body in a manner characteristic of clothing;

B. a desktop, laptop or notebook computer if the
sales price of the computer does not exceed [
one thousand
dollars ($1,000)
]
one thousand five hundred dollars ($1,500)

and any associated monitor, speaker or set of speakers,
printer, keyboard, microphone or mouse if the sales price of
the device does not exceed [
five hundred dollars ($500)
]
seven
hundred fifty dollars ($750)
; and

C. school supplies that are items normally used by
students in a standard classroom for educational purposes,
including notebooks, paper, writing instruments, crayons, art
supplies, rulers, book bags, backpacks, handheld calculators,
maps and globes, but not including watches, radios, compact
disc players, headphones, sporting equipment, portable or
desktop telephones, copiers, office equipment, furniture or
fixtures."

SECTION 2.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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