by Caleb Fort
Daily Lobo
State and local taxes will not be charged in New Mexico for school supplies and other items between Aug. 5 and Aug. 7.
Kathleen Baca, spokeswoman for New Mexico Taxation and Revenue, said the tax break is meant to keep money in the state during a similar tax holiday in Texas.
Kelly O'Donnell, assistant secretary for tax policy, said the tax holiday will cost local governments about $1.4 million, and the state government about $2.2 million.
"We did the New Mexico sales tax holiday so that New Mexicans wouldn't have to go to Texas to save money," she said.
The tax break will apply to school items such as notebooks and calculators under $15. Clothing under $100 such as pants, belts and shoes will also not be subject to state or local gross receipts taxes.
New Mexicans will also get a tax break on computers less than $1,000 and computer equipment less than $500.
Nine states and Washington, D.C. have similar tax holidays this year. The first sales tax holiday in the United States was in New York in 1997, according to the Federation of Tax Administrators' Web site.
Student Renee Pehr said she used to go to Lubbock, Texas, to take advantage of the tax holiday when she lived in eastern New Mexico. She said even though New Mexico will have its own tax holiday this year, she would rather go to Texas.
"I would probably go to Texas anyway, because they have nicer stores," she said.
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Bob Keith, spokesman for Target, said the holiday is a good idea.
"I believe that it's good for our economy," he said. "I think it's the state giving something back."
Melanie Sparks, director of the UNM Bookstore, said the bookstore does not pay state gross receipts tax or city taxes, because it is part of the University.
"Technically every day at the bookstore is tax free with that particular tax," she said.
