Every year, a number of US states offer a tax-free weekend during which customers can buy specific items without paying sales tax. Families can take advantage of the tax-free weekend, which is often held a few weeks before the start of the school year, to save money on back-to-school shopping. The tax-free weekend typically occurs in August in New Mexico, and many customers are unsure if sunglasses qualify.
It depends, is the response. During the tax-free weekend in New Mexico, items of clothes and footwear that cost less than $100 per unit are exempt from sales tax. Jewelry, handbags, and watches are examples of accessories that are not exempt from paying sales tax. Sunglasses are considered to be accessories, so they are not excluded from paying taxes. Sunglasses will still require paying sales tax if you intend to buy them in New Mexico during the tax-free weekend.
In New Mexico, there is a gross receipts tax in addition to the sales tax. Businesses are subject to the gross receipts tax, which is based on those revenues. The location of the business and the kind of goods or services the firm offers affect the rate of the gross receipts tax. In New Mexico, there is a real estate transfer tax in addition to the gross receipts tax. A tax on the transfer of real property, the real estate transfer tax is typically paid by the seller of the property.
In Albuquerque, New Mexico, the current sales tax rate is 7.875%. This price includes the 5.125% state sales tax, the 1.25% county sales tax, and the 1.5% city sales tax. It is usually a good idea to check the local sales tax rate before making a purchase because the rate of sales tax in different areas of New Mexico could differ.
And finally, even if you live outside of New Mexico and buy things there, you might still be charged sales tax. Due to New Mexico’s adoption of the Streamlined Sales and Use Tax Agreement, out-of-state vendors must now collect and pay sales tax on all purchases made to residents of the state. If you live outside of New Mexico and want to buy something there, you should ask the seller if they will be charging sales tax.
In conclusion, shoppers will still be required to pay sales tax on sunglasses since they are not included in the tax-free weekend in New Mexico. In addition to the sales tax, New Mexico also levies a gross receipts tax and a real estate transfer tax. In Albuquerque, New Mexico, the current sales tax rate is 7.875%, although out-of-state purchases may still be subject to it. As always, it’s crucial to confirm the applicable local tax regulations before completing a purchase.