The bill amends Section 7-9-116 NMSA 1978 to extend the sunset date for a gross receipts tax deduction for retail sales made by certain businesses on the first Saturday after Thanksgiving from July 1, 2025, to July 1, 2030. This deduction applies to sales of tangible personal property priced under $500, including a variety of items such as clothing, sporting goods, tools, books, and home electronics, provided the sales are made by businesses in New Mexico with no more than ten employees.

Additionally, the bill modifies the reporting requirements for the deduction. Instead of requiring the department to compile an annual report detailing the number of taxpayers claiming the deduction and its effectiveness, the new language mandates that the deduction be included in the tax expenditure budget, which will encompass the total annual aggregate cost of the deduction. This change aims to streamline the reporting process while ensuring that the financial impact of the deduction is still monitored.

Statutes affected:
introduced version: 7-9-116