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HOUSE BILL 179
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Doreen Y. Gallegos and Linda Serrato and Pamelya Herndon
and Patricia A. Lundstrom and D. Wonda Johnson
AN ACT
RELATING TO TAXATION; EXTENDING THE SUNSET DATE FOR A GROSS
RECEIPTS TAX DEDUCTION FOR RETAIL SALES MADE BY CERTAIN
BUSINESSES ON THE FIRST SATURDAY AFTER THANKSGIVING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-9-116 NMSA 1978 (being Laws 2018,
Chapter 46, Section 1, as amended) is amended to read:
"7-9-116. DEDUCTION--GROSS RECEIPTS TAX--RETAIL SALES BY
CERTAIN BUSINESSES.--
A. Prior to July 1, [2025 ] 2030, 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
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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;
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(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
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section shall report the amount of the deduction separately in
a manner required by the department.
E. The [department shall compile an annual report
on the deduction provided by this section that shall include
the number of taxpayers that claimed the deduction, the
aggregate amount of deductions claimed and any other
information necessary to evaluate the effectiveness of the
deduction. The department shall present the annual report to
the revenue stabilization and tax policy committee and the
legislative finance committee with an analysis of the
effectiveness and cost of the deduction and whether the
deduction is performing the purpose for which it was created ]
deduction provided by this section shall be included in the tax
expenditure budget pursuant to Section 7-1-84 NMSA 1978,
including the total annual aggregate cost of the deduction ."
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