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HOUSE MEMORIAL 52
57
TH LEGISLATURE
- STATE OF NEW MEXICO -
FIRST SESSION
, 2025
INTRODUCED BY
Rebecca Dow and Jonathan A. Henry
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, 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
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limited traditional accommodations; and
WHEREAS, the total economic impact of short-term rentals
in New Mexico in 2023 was one billion one hundred thousand
dollars ($1,000,100,000), with seven hundred forty-six million
dollars ($746,000,000) in direct visitor spending, supporting
fourteen thousand five hundred fifty-five jobs statewide and
generating eighty-two million one hundred thousand dollars
($82,100,000) in state and local tax revenues; and
WHEREAS, in Bernalillo county, short-term rentals
generated eleven million six hundred thousand dollars
($11,600,000) in tax revenue, with seven million four hundred
thousand dollars ($7,400,000) from lodging taxes, supporting
Albuquerque's tourism-driven economy, which comprises eleven
and four-tenths percent of the state's tourism sector; and
WHEREAS, in Santa Fe county, short-term rentals
contributed thirty-three million six hundred thousand dollars
($33,600,000) in tax revenue, including sixteen million eight
hundred thousand dollars ($16,800,000) from lodging taxes,
while in Taos county, short-term rentals generated fourteen
million eight hundred thousand dollars ($14,800,000) in tax
revenue, with nine million dollars ($9,000,000) from lodging
taxes, demonstrating the substantial role short-term rentals
play in supporting local public finances; and
WHEREAS, in Lincoln county, short-term rentals contributed
fourteen million six hundred thousand dollars ($14,600,000) in
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tax revenue, with nine million dollars ($9,000,000) coming from
lodging taxes, further reinforcing the economic significance of
short-term rentals in rural and tourist-heavy regions; and
WHEREAS, the availability of short-term rental listings
varies, with fifteen percent operating as full-time rentals,
thirty-six percent as semi-full-time rentals and forty-nine
percent as part-time rentals, demonstrating the diverse ways in
which short-term rentals support New Mexico's tourism and
workforce housing needs; 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, only fifteen percent of short-term rentals are
operated full time with no owner use, and a significant portion
of these properties belong to New Mexico residents who are
frequently deployed or temporarily out of state for work
assignments, further emphasizing that most short-term rentals
serve as supplemental income sources for homeowners rather than
large-scale business ventures; and
WHEREAS, the vast majority of short-term rental
properties, totaling approximately eighty-five percent, are
operated on a part-time or semi-full-time basis, serving
primarily as a means for homeowners to generate supplemental
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income to offset mortgage, property tax and maintenance
expenses, thereby enabling them to retain their homes; and
WHEREAS, such reclassifications carry substantial economic
and legal ramifications, potentially forcing many New Mexicans
to cease offering short-term rentals and jeopardizing their
continued homeownership, 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 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
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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 its
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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