Small Business Saturday comes with a tax holiday for purchases at some stores
FARMINGTON – The New Mexico Departments of Economic Development, Tourism, and Taxation and Revenue said in a news release that shopping local this season, especially on Small Business Saturday this weekend, is good for the state and its economy as well as local business owners.
Local organizers hope local shoppers will come out for the Small Business Saturday event and the Holiday Art Walk will take place in Historic Downtown Farmington Saturday, Nov. 26, although shops in other parts of town are also participating.
Those shops will feature special deals from 11 a.m. to 8 p.m. The Art Walk is from 3 p.m. until 8 p.m.
While participating local shops will feature special deals from 11 a.m. to 8 p.m., the state’s taxation office notes that there’s also a gross receipts tax holiday on Saturday for some kinds of purchases at qualifying businesses.
"The annual Small Business Saturday tax holiday starts this year at 12:01 a.m. Saturday, Nov. 26, and ends at midnight the same day,” the state said in a news release. “For this one day, the state allows New Mexico-based businesses with no more than 10 employees to deduct gross receipts tax on sales of qualifying items. Businesses operating under a franchise agreement do not qualify for the tax holiday."
Many types of merchandise qualify for gross receipts tax-free status Saturday, including toys, games, electronics, books and sporting goods – but the price has to be under $500 per item, the news release stated.
The bad news: gift cards do not qualify for tax-free status.
“New Mexico’s Small Business Saturday Gross Receipts Tax Holiday is the perfect day to shop local and show love for our small business community, who are essential to our state’s continued success and economic growth,” Economic Development Secretary Alicia J. Keyes said in the release.
“Especially in a time where families are struggling with inflation, it’s great to have that tax relief available,” Taxation and Revenue Secretary Stephanie Schardin Clarke said. “But beyond that, I think it’s a great way for customers to become familiar with local businesses that they might not have shopped at before.”
Details are available online
A complete list of items covered by the gross receipts tax deduction is found on the Taxation and Revenue Department website, tax.newmexico.gov, by opening the News & Alerts page and choosing “Small Business Saturday Tax Holiday.”
New Mexicans have another online option to support almost 100 home-grown businesses during the holiday season – the New Mexico True Certified Gift Guide at https://tinyurl.com/ru5fyfux.
“Our small businesses and entrepreneurs serve as the backbone of our economy and help us further share our unique culture and heritage that makes us New Mexico True. When folks shop local, they help ensure we can continue to support a vibrant community of creators and entrepreneurs,” Tourism Secretary Jen Paul Schroer said.
Local businesses participating in Small Business Saturday include:Amy's BookcaseArtifacts GalleryBig Rock Trading PostClancy's Irish CantinaDusty AtticFifth Generation Trading CompanyHogback Trading PostJ.A. Jewelers & Co.Navajo TradingOso Grande Coffee CompanyRod Hubble Fine ArtStudio 116Three Rivers Eatery and BreweryToadlena Trading PostTRAC Art Center & Gallery505 Cycles
Small Business Saturday was founded by the credit card company American Express during the recession of 2010 to boost holiday shopping in small businesses. The local event is sponsored by The Downtown Association & Farmington Parks, Recreation and Cultural Affairs, according to https://farmingtonnm.org/.
Animas Valley Mall is reopens after a Thanksgiving holiday closure to welcome holiday shoppers at 9 a.m. on Friday, Nov. 25.