Stores, parents and students prepare for tax-free weekend amid financial pressure

The end of summer break isn't the only thing that has New Mexico families and students begrudgingly hitting the stores for back-to-school shopping.

Alarmed by the costs they see on the shelves, some are turning to the tax-free weekend for some relief.

"Everything's expensive, the cost of food and supplies," said Ashley Stone, a Corrales mom of two, as she was school shopping with her sixth and 10th grader on Thursday, two weeks ahead of Albuquerque Public Schools' first day on Aug. 7.

Stone isn't the only one seeing and feeling the higher prices.

A consumer survey from the ICSC, a global retail trade organization, recently found that 56% are worried about affording their typical back-to-school supplies due to price increases from tariffs. The report found that families are shopping earlier and planning their shopping around promotional events and sales to offset the costs.

Stone is among the many families who are doing their school shopping this weekend during the New Mexico Gross Receipts Tax Holiday. The annual holiday allows participating businesses to sell certain back-to-school items free of a gross receipts tax, or GRT. This year, the holiday runs from Friday, July 25, through Sunday, July 27.

Items that qualify for the deduction include school supplies such as school backpacks, binders and crayons under $30 per unit; clothing or shoes under $100; computers, desktops, tablets and notebook computers under $1,000; and computer-related equipment under $500. A full list of nontaxable items can be found on the Tax Holiday page of the New Mexico Taxation and Revenue Department's website.

Families and students across New Mexico can save between 5% and 10% on selected purchases, according to a news release from the department. In Albuquerque, the municipal GRT rate is 7.6250%, so if a family spent the full $1,000 on school-related electronics, they could save roughly $76, according to Bobbie Marquez, the taxation and revenue department's acting communication director.

Melinda Wetzel, owner of the secondhand clothing store Other Mothers/Trendy Trades, said the savings aren't "huge" but "it makes a difference" to those who shop at the Albuquerque store, which sells clothing for children, teens and mothers, as well as school supplies and uniforms at 7200 Montgomery NE. Wetzel said her customers and even her employees have felt a squeeze on their wallets lately.

"Consumers are worried, and I'm worried along with them because I've been in this long enough to see three or four recessions, three significant ones in my time, and there's always an adjustment period," Wetzel said.

College students gearing up for the upcoming fall semester are also feeling the pinch. Rio Rancho's Emily Stewart, a senior attending Highlands University, said she and her peers are "always talking about how to stretch our money further and looking for the best deals."

Stewart said she and her family have utilized the tax-free weekend to save on back-to-school shopping in the past.

"Even though 5% to 10% might not sound like a lot at first, when you're buying just a bit of supplies to a full list of supplies, those savings add up quickly," Stewart said. "As a college student, every bit helps, especially when you're already juggling tuition, rent and other living costs."

Kristen Broesder, an Albuquerque mother of two children in second grade and prekindergarten, said she feels concerned for the teachers, who she said often try to cover kids who don't have everything they need by purchasing extra school supplies themselves.

Broesder and college student Gabrielle Penrose said they had no idea this upcoming weekend was the tax-free holiday. Penrose said she doesn't think many of her peers are aware of the holiday, adding she thinks the weekend could use some more promotion and education on what items qualify.

Even still, Wetzel said the weekend typically brings in "quite a crowd," likely because her store sends out an email notice to customers informing them of the weekend.

While some businesses can choose not to participate, Marquez said many big retailers often do. For those who desire to avoid potential crowds during the tax-free weekend, Marquez said the deduction is also applicable to online shopping of the qualifying items with participating businesses.

Wetzel said she is looking forward to seeing people in the store this weekend and has "always felt good" about the store providing the community with many of the items qualified for the deduction.

"This weekend is a great opportunity for New Mexicans to save some money on select items needed for their families as children are heading back to school," Stephanie Schardin Clarke, the department's Cabinet secretary, said in a statement.

While a proponent of the weekend, Stewart said she thinks more support is needed, especially in light of increased financial pressure.

"Programs like tax-free weekends help, but more awareness and resources would go a long way in making education truly accessible for students and low-income families," Stewart said.