• January 24, 2022
 Tax Free Weekends for Texas, New Mexico fast approaching

Tax Free Weekends for Texas, New Mexico fast approaching

While it may not seem like it now, with the 2021-22 school year right around the corner for Borderland residents, so are the much-anticipated Tax Free Weekends in both Texas and New Mexico.

This year both state’s tax free weekends fall on the same dates, August 6th through the 8th.  While the dates may be the same, there are differences in the way both states place times under the tax free weekend tree.

For New Mexico, their tax free weekend was established in 2005 and has the following general guidelines.

The law limits the tax-holiday deduction to receipts of retailers from sales of the following types of items please see page 6 of this FYI for a more detailed list of taxable and nontaxable items for the tax holiday.:

• Clothing or shoes sold for less than $100; however, accessories and special clothing or footwear primarily designed for athletic activity or protective use and not normally worn beyond the scope of the athletic activity or protective use remain taxable;

• Desktop, laptop, notebook, or tablet computers sold for no more than $1,000, and any associated monitor, speaker or set of speakers, printer, keyboard, microphone, or mouse sold for no more than $500, and

• School supplies students normally use in a standard classroom for educational purposes. The law specifically lists notebooks, paper, writing instruments, crayons, art supplies, rulers, bookbags, backpacks, handheld calculators, maps, and globes as deductible
during the tax holiday.

The law specifically excludes watches, radios, compact disc players, headphones, sporting equipment, portable desktop telephones, copiers, office equipment, furniture, or fixtures. The law does not consider such items to be school supplies that students normally use in a standard classroom. Sales of those items are taxable during the three-day period.

For a full look at the regulation in New Mexico, click here.

Here in Texas, purchases of most clothing, footwear, school supplies and backpacks (sold for less than $100) during the annual Tax-Free weekend. Qualifying items can be purchased tax free from a Texas store or from an online or catalog seller doing business in Texas.

In most cases, shoppers do not need to give the seller an exemption certificate to buy qualifying items tax free.

Qualifying Items

Online Purchases and Telephone Orders

To promote social distancing, the Texas Comptroller’s office wants all taxpayers to know that during the Tax-Free Weekend, you can buy qualifying items online or by telephone, mail, custom order or any other means (including in-store purchases) tax free, when either

  • the item is both delivered, and paid for, by the customer during the exemption; or
  • the customer orders and pays for the item, and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period ends.

A seller accepts an order when the seller has acted to fill the order for immediate shipment.

An order is filled for immediate shipment regardless of whether the shipment is delayed due to a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.

The sales tax exemption applies only to qualifying items you buy during the sales tax holiday. Items you buy before or after the sales tax holiday do not qualify for exemption, and there is no tax refund available.

Sellers – What You Need to Know

For a full read on the guidelines in Texas, click here.   |  To view our previous coverage, click here.

Staff Report

Staff Reports are just that, Staff Reporting the news. No skew, no opinion just the news. We pride ourselves on making sure that we bring you the news as soon as it is published, submitted or sent to us. No need to have a reporter rewrite or give their opinion. The facts or information, nothing more.

Related post