HOUSE COMMERCE AND ECONOMIC DEVELOPMENT
COMMITTEE SUBSTITUTE FOR
HOUSE MEMORIAL 52
57th legislature - STATE OF NEW MEXICO - first session, 2025
A MEMORIAL
REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT, THE TOURISM DEPARTMENT AND THE TAXATION AND REVENUE DEPARTMENT TO ESTABLISH A WORK GROUP TO STUDY THE ECONOMIC IMPACT, TAXATION AND REGULATORY FRAMEWORK OF SHORT-TERM RENTALS ACROSS NEW MEXICO; REQUESTING SUSPENSION OF RECLASSIFICATION OF SHORT-TERM RENTAL PROPERTIES UNTIL COMPLETION OF THE STUDY.
WHEREAS, the Lodgers' Tax Act defines a short-term rental as a furnished accommodation rented for less then thirty consecutive days. This definition encompasses various property types, including single-family homes, condominiums, apartments and casitas; and
WHEREAS, short-term rentals have become an increasingly significant part of New Mexico's tourism economy, providing essential accommodations for visitors and serving as a critical component of the state's hospitality industry; and
WHEREAS, short-term rentals also serve as a necessary part of the housing market for traveling workers, including health care professionals, construction crews and remote employees who require flexibility and temporary lodging options in areas with limited traditional accommodations; and
WHEREAS, some county assessors in New Mexico have begun reclassifying short-term rental properties as nonresidential for taxation purposes, creating potential implications for property tax rates and regulatory compliance for short-term rental owners and operators; and
WHEREAS, such reclassifications carry substantial economic and legal ramifications, potentially forcing many New Mexicans to cease offering short-term rentals, and it is therefore in the public interest to conduct a comprehensive study before permanent changes are made;
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that a short-term rental work group be established by the economic development department, the tourism department and the taxation and revenue department to study the economic contributions, workforce housing benefits, taxation policies and regulatory considerations of short-term rentals statewide; and
BE IT FURTHER RESOLVED that this work group be composed of representatives from the economic development department, the tourism department, the taxation and revenue department, the New Mexico office of housing, the New Mexico mortgage finance authority, the New Mexico short-term rental association, the New Mexico association of realtors and the assessors affiliate of the New Mexico association of counties, ensuring a collaborative and data-driven approach to short-term rental policy evaluation; and
BE IT FURTHER RESOLVED that the study evaluate short-term rental taxation policies, the impact of nonresidential property tax classifications, zoning and permitting regulations and potential pathways for a fair and balanced regulatory framework for short-term rental operators and local communities; and
BE IT FURTHER RESOLVED that the work group report findings and policy recommendations to the appropriate interim legislative committees by December 1, 2025; and
BE IT FURTHER RESOLVED that county assessors be requested to suspend further reclassification of short-term rental properties from residential to nonresidential until the completion of the study, ensuring that policy recommendations are based on data and economic analysis; and
BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of economic development, the secretary of tourism, the secretary of taxation and revenue, the New Mexico short-term rental association, the New Mexico association of realtors and relevant local government associations for appropriate distribution.
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