Two-day suspension of the Gross Receipts Tax a help to consumers, merchants
SANTA FE, N.M., Aug. 1, 2022—This Friday’s (August 5) suspension of the New Mexico Gross Receipts Tax for two days will not cure the economic ailments afflicting the state’s Main Street small businesses, but it will be a nice respite from the continued pounding inflation is having on mom-and-pop enterprises, according to New Mexico’s leading small-business association.
“Among other things a recent survey of our small-business-owning members showed is that 86% of them are increasing the prices of their goods or services and 82% percent of them are absorbing costs through lower business earnings,” said Jason Espinoza, New Mexico state director for the National Federation of Independent Business (NFIB). “Eliminating collection of the Gross Receipts Tax, even for two days, does increase the purchasing power of consumers and lets small-business owners keep a little profit. We live in an era as never before when every little helps.”
According to the New Mexico Department of Revenue, “If you have school-age children, it’s [the tax holiday] nothing short of a bonanza. For that weekend the state suspends collection of gross receipts tax on sales of qualifying items so you can buy the items tax free. Because many merchants also absorb the tax on a number of non-qualifying items, you are the beneficiary all around.
“The tax holiday begins at 12:01 a.m. on Friday, August 5, 2022, and concludes on Sunday, August 7, 2022, at midnight. During that time the law provides a deduction from gross receipts for retail sales of qualifying tangible personal property; in effect allowing the retailer to sell the items ‘tax free.’”
Keep up with the latest on New Mexico small-business news at www.nfib.com/new-mexico. Follow NFIB on Twitter @NFIB_NM.
For almost 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
NFIB New Mexico