Are you ready for Small Business Saturday?
On November 27, 2021, small businesses across the country will step front and center to embrace the holiday shopping rush that begins with Black Friday. The Saturday after Thanksgiving, the state of New Mexico joins others to suspend the collection of gross receipts tax on the sale of qualified items, providing a deduction from gross receipts, and effectively allowing the retailer to sell products “tax free.” The incentive to “shop small” starts precisely at 12:01 am and will last until midnight on the 27th.
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Remind your patrons to stop by your establishment or website for Small Business Saturday! Also, consider extending your operating hours and adding special discounts.
Items must be a type of qualified tangible personal property and have a sales price of less than $500. They can include:
- clothing
- accessories
- sporting goods
- tools
- books
- art
- cosmetics
- musical instruments
- cookware
- bedding
- furniture
- toys
- games
- electronics.
Benefitting from this holiday, qualified businesses will be able to take a deduction on their Gross Receipts Tax return for qualified sales. In order to qualify for the deduction, the business must maintain its primary place of business in New Mexico and employ no more than 10 employees at any point during the year. Businesses that operate under a franchise agreement do not qualify to deduct their receipts under this tax holiday.
More information, including a complete list of items that qualify for the gross receipts tax deduction, is available on the Taxation and Revenue Department website»
We Welcome Your Questions
Please reach out to trusted advisors from the REDW State and Local Tax (SALT) team below. REDW is ready to help answer your questions and help your business make the most of Small Business Saturday. Shop small!
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