The annual Small Business Saturday tax holiday is on Nov. 26 this year, offering many small businesses the opportunity to deduct gross receipts taxes on the sale of several items.
SANTA FE – Small Business Saturday is this weekend, and several state agencies are encouraging New Mexicans to forego the big box stores, support locally-owned businesses and perhaps even save a little money.
Small Business Saturday tax holiday
The Economic Development Department’s New Mexico MainStreet program encourages New Mexicans to shop at local, small businesses first during the giving season to keep dollars in the local economy. Affiliated MainStreet and Arts & Cultural Districts across the state are hosting family-friendly events on Saturday to bring visitors and locals downtown to eat, shop and play in the hearts of their communities. More information is available at nmmainstreet.org.
New Mexicans who do their holiday shopping at small, New Mexico-based businesses this Saturday will get the satisfaction of supporting their neighbors and of saving some money in the process, according to a joint news release from the the New Mexico Departments of Economic Development, Tourism and Taxation and Revenue.
The annual Small Business Saturday tax holiday begins at 12:01 a.m. Saturday, Nov. 26, and ends at midnight the same day. 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.
A wide variety of merchandise qualifies for tax-free status — toys, games, electronics, books, sporting goods and more — as long as the price is under $500 per item. Gift cards do not qualify.
“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,” said Economic Development Secretary Alicia J. Keyes.
“Especially in a time where families are struggling with inflation, it’s great to have that tax relief available,” added Taxation and Revenue Secretary Stephanie Schardin Clarke. “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.”
Downtown Las Cruces Partnership kicks off holiday shopping season
Downtown Las Cruces Partnership has once again been chosen as the American Express Neighborhood Champion. DLCP is working with downtown businesses and the Las Cruces Farmers and Crafts Market to kick off Small Business Saturday.
The goal of the project is to bring attention to the locally-owned business in Las Cruces “by offering great shopping opportunities and a variety of products,” according to a news release. DLCP and the Las Cruces Arts and Cultural District are once again spearheading “Ventanas Vivas.” Local artists and business owners are teaming up to decorate 13 windows within downtown and the Arts and Cultural District. Currently, windows are being decorated as downtown is being readied for the season.
“We see Ventanas Vivas as a safe and fun way for families and friends to experience art, enjoy the holidays and visit their favorite downtown shops and restaurants,” said DLCP Executive Director Jennifer Garcia Kozlowski.
Now in its fourth year, the colorful, pop-up murals include painted scenes of caroling, snowmen, cozy coffee drinking, Santa Claus and nativity scenes. Susan Cabello, director of Las Cruces Arts and Culture District, said the murals will be judged by the public through an electronic ballot. The QR code can be found at downtownlascruces.org starting Nov. 26. Voting will be open through Monday, Dec. 26, 2022.
Cabello said the amount of interest in this holiday activity has grown significantly over the last few years.
“I was asked about this specific event all year long,” Cabello added. “There’s so much excitement and interest — it’s a true community-based activity.”
DLCP will have a table at the Las Cruces Farmer’s & Crafts Market on Saturday, Nov. 26, to greet shoppers and hand out “Shop Small” event swag.
Other ways to support small businesses
More information about this Saturday’s tax holiday, including a complete list of items that qualify for the gross receipts tax deduction, is available on the Taxation and Revenue Department website, tax.newmexico.gov, by opening the News & Alerts page and choosing “Small Business Saturday Tax Holiday.”
Another way for New Mexicans to support home-grown businesses during the holiday season is to shop local through the New Mexico True Certified Gift Guide.
“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.
The New Mexico True gift guide features nearly 100 New Mexico True Certified products from local merchants, artists and entrepreneurs, including:
- Gift boxes
- Chile products
- Snacks and refreshments
- Fine art
- Self-care products
- Board games
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