NMSA 1978, § 7-9-116 — 7-9-116

Deduction; gross receipts tax; retail sales by certain
businesses.

# A.

Prior to July 1, 2025, receipts from the sale at retail of the following types of
tangible personal property may be deducted if the sales price of the property is less
than five hundred dollars ($500) and:
(1) the sale occurs during the period beginning at 12:01 a.m. on the first
Saturday after Thanksgiving and ending at midnight on the same Saturday;
(2) the sale is for:
(a) an article of clothing or footwear designed to be worn on or about the
human body;
(b) accessories, including jewelry, handbags, book bags, backpacks, luggage,
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;
(c) sporting goods and camping equipment;
(d) tools used for home improvement, gardening and automotive maintenance
and repair;
(e) books, journals, paper, writing instruments, art supplies, greeting cards
and postcards;
(f) works of art, including any painting, drawing, print, photograph, sculpture,
pottery or ceramics, carving, textile, basketry, artifact, natural specimen, rare book,
authors' papers, objects of historical or technical interest or other article of intrinsic
cultural value;
(g) floral arrangements and indoor plants;
(h) cosmetics and personal grooming items;
(i) musical instruments;
(j) cookware and small home appliances for residential use;
(k) bedding, towels and bath accessories;
(l) furniture;
(m)a toy or game that is a physical item, product or object clearly intended
and designed to be used by children or families in play;
(n) a video game or video game console and any associated accessories for
the video game console; or
(o) home electronics such as computers, phones, tablets, stereo equipment
and related electronics accessories; and
(3) the sale is made by a seller that carries on a trade or business in New
Mexico, maintains its primary place of business in New Mexico, as determined by the
department, and employed no more than ten employees at any one time during the
previous fiscal year.

# B.

Receipts for sales made by a business that operates under a franchise
agreement may not be deducted pursuant to this section.

# C.

The purpose of the deduction provided by this section is to increase sales at
small local businesses.

# D.

A taxpayer allowed a deduction pursuant to this section shall report the amount
of the deduction separately in a manner required by the department.

# E.

The deduction provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and
cost of the deduction and whether the deduction is performing the purpose for which it
was created.