New Mexico 2025 Regular Session

New Mexico House Bill HM52 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~HCEDC/HM 52~~
2		-	~~Page 1~~
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	28	+	HOUSE MEMORIAL 52
	29	+	57
	30	+	TH LEGISLATURE
	31	+	- STATE OF NEW MEXICO -
	32	+	FIRST SESSION
	33	+	, 2025
	34	+	INTRODUCED BY
	35	+	Rebecca Dow and Jonathan A. Henry
28	36		A MEMORIAL
29	37		REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT, THE TOURISM
30		-	DEPARTMENT AND THE TAXATION AND REVENUE DEPARTMENT TO
31		-	ESTABLISH A WORK GROUP TO STUDY THE ECONOMIC IMPACT, TAXATION
32		-	AND REGULATORY FRAMEWORK OF SHORT-TERM RENTALS ACROSS NEW
33		-	MEXICO; REQUESTING SUSPENSION OF RECLASSIFICATION OF SHORT-
34		-	TERM RENTAL PROPERTIES UNTIL COMPLETION OF THE STUDY.
35		-	WHEREAS, the Lodgers' Tax Act defines a short-term
36		-	rental as a furnished accommodation rented for less than
37		-	thirty consecutive days. This definition encompasses various
38		-	property types, including single-family homes, condominiums,
39		-	apartments and casitas; and
	38	+	DEPARTMENT AND THE TAXATION AND REVENUE DEPARTMENT TO ESTABLISH
	39	+	A WORK GROUP TO STUDY THE ECONOMIC IMPACT, TAXATION AND
	40	+	REGULATORY FRAMEWORK OF SHORT-TERM RENTALS ACROSS NEW MEXICO;
	41	+	REQUESTING SUSPENSION OF RECLASSIFICATION OF SHORT-TERM RENTAL
	42	+	PROPERTIES UNTIL COMPLETION OF THE STUDY.
40	43		WHEREAS, short-term rentals have become an increasingly
41	44		significant part of New Mexico's tourism economy, providing
42		-	essential accommodations for visitors and serving as a
43		-	critical component of the state's hospitality industry; and
44		-	WHEREAS, short-term rentals also serve as a necessary
45		-	part of the housing market for traveling workers, including
46		-	health care professionals, construction crews and remote
47		-	employees who require flexibility and temporary lodging
48		-	options in areas with limited traditional accommodations; and
49		-	WHEREAS, some county assessors in New Mexico have begun
50		-	reclassifying short-term rental properties as nonresidential
51		-	for taxation purposes, creating potential implications for HCEDC/HM 52
52		-	Page 2
	45	+	essential accommodations for visitors and serving as a critical
	46	+	component of the state's hospitality industry; and
	47	+	WHEREAS, short-term rentals also serve as a necessary part
	48	+	of the housing market for traveling workers, including health
	49	+	care professionals, construction crews and remote employees who
	50	+	require flexibility and temporary lodging options in areas with
	51	+	.231486.3 underscored material = new
	52	+	[bracketed material] = delete
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78		-	property tax rates and regulatory compliance for short-term
79		-	rental owners and operators; and
80		-	WHEREAS, such reclassifications carry substantial
81		-	economic and legal ramifications, potentially forcing many
82		-	New Mexicans to cease offering short-term rentals, and it is
83		-	therefore in the public interest to conduct a comprehensive
84		-	study before permanent changes are made;
85		-	NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF
86		-	REPRESENTATIVES OF THE STATE OF NEW MEXICO that a short-term
87		-	rental work group be established by the economic development
88		-	department, the tourism department and the taxation and
89		-	revenue department to study the economic contributions,
90		-	workforce housing benefits, taxation policies and regulatory
91		-	considerations of short-term rentals statewide; and
92		-	BE IT FURTHER RESOLVED that this work group be composed
93		-	of representatives from the economic development department,
94		-	the tourism department, the taxation and revenue department,
95		-	the New Mexico office of housing, the New Mexico mortgage
96		-	finance authority, the New Mexico short-term rental
97		-	association, the New Mexico association of realtors and the
98		-	assessors affiliate of the New Mexico association of
99		-	counties, ensuring a collaborative and data-driven approach
100		-	to short-term rental policy evaluation; and
101		-	BE IT FURTHER RESOLVED that the study evaluate short-
102		-	term rental taxation policies, the impact of nonresidential HCEDC/HM 52
103		-	Page 3
	78	+	limited traditional accommodations; and
	79	+	WHEREAS, the total economic impact of short-term rentals
	80	+	in New Mexico in 2023 was one billion one hundred thousand
	81	+	dollars ($1,000,100,000), with seven hundred forty-six million
	82	+	dollars ($746,000,000) in direct visitor spending, supporting
	83	+	fourteen thousand five hundred fifty-five jobs statewide and
	84	+	generating eighty-two million one hundred thousand dollars
	85	+	($82,100,000) in state and local tax revenues; and
	86	+	WHEREAS, in Bernalillo county, short-term rentals
	87	+	generated eleven million six hundred thousand dollars
	88	+	($11,600,000) in tax revenue, with seven million four hundred
	89	+	thousand dollars ($7,400,000) from lodging taxes, supporting
	90	+	Albuquerque's tourism-driven economy, which comprises eleven
	91	+	and four-tenths percent of the state's tourism sector; and
	92	+	WHEREAS, in Santa Fe county, short-term rentals
	93	+	contributed thirty-three million six hundred thousand dollars
	94	+	($33,600,000) in tax revenue, including sixteen million eight
	95	+	hundred thousand dollars ($16,800,000) from lodging taxes,
	96	+	while in Taos county, short-term rentals generated fourteen
	97	+	million eight hundred thousand dollars ($14,800,000) in tax
	98	+	revenue, with nine million dollars ($9,000,000) from lodging
	99	+	taxes, demonstrating the substantial role short-term rentals
	100	+	play in supporting local public finances; and
	101	+	WHEREAS, in Lincoln county, short-term rentals contributed
	102	+	fourteen million six hundred thousand dollars ($14,600,000) in
	103	+	.231486.3
	104	+	- 2 - underscored material = new
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129		-	property tax classifications, zoning and permitting
130		-	regulations and potential pathways for a fair and balanced
131		-	regulatory framework for short-term rental operators and
132		-	local communities; and
133		-	BE IT FURTHER RESOLVED that the work group report
134		-	findings and policy recommendations to the appropriate
135		-	interim legislative committees by December 1, 2025; and
136		-	BE IT FURTHER RESOLVED that county assessors be
137		-	requested to suspend further reclassification of short-term
138		-	rental properties from residential to nonresidential until
139		-	the completion of the study, ensuring that policy
140		-	recommendations are based on data and economic analysis; and
	131	+	tax revenue, with nine million dollars ($9,000,000) coming from
	132	+	lodging taxes, further reinforcing the economic significance of
	133	+	short-term rentals in rural and tourist-heavy regions; and
	134	+	WHEREAS, the availability of short-term rental listings
	135	+	varies, with fifteen percent operating as full-time rentals,
	136	+	thirty-six percent as semi-full-time rentals and forty-nine
	137	+	percent as part-time rentals, demonstrating the diverse ways in
	138	+	which short-term rentals support New Mexico's tourism and
	139	+	workforce housing needs; and
	140	+	WHEREAS, some county assessors in New Mexico have begun
	141	+	reclassifying short-term rental properties as nonresidential
	142	+	for taxation purposes, creating potential implications for
	143	+	property tax rates and regulatory compliance for short-term
	144	+	rental owners and operators; and
	145	+	WHEREAS, only fifteen percent of short-term rentals are
	146	+	operated full time with no owner use, and a significant portion
	147	+	of these properties belong to New Mexico residents who are
	148	+	frequently deployed or temporarily out of state for work
	149	+	assignments, further emphasizing that most short-term rentals
	150	+	serve as supplemental income sources for homeowners rather than
	151	+	large-scale business ventures; and
	152	+	WHEREAS, the vast majority of short-term rental
	153	+	properties, totaling approximately eighty-five percent, are
	154	+	operated on a part-time or semi-full-time basis, serving
	155	+	primarily as a means for homeowners to generate supplemental
	156	+	.231486.3
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	184	+	income to offset mortgage, property tax and maintenance
	185	+	expenses, thereby enabling them to retain their homes; and
	186	+	WHEREAS, such reclassifications carry substantial economic
	187	+	and legal ramifications, potentially forcing many New Mexicans
	188	+	to cease offering short-term rentals and jeopardizing their
	189	+	continued homeownership, and it is therefore in the public
	190	+	interest to conduct a comprehensive study before permanent
	191	+	changes are made;
	192	+	NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF
	193	+	REPRESENTATIVES OF THE STATE OF NEW MEXICO that a short-term
	194	+	rental work group be established by the economic development
	195	+	department, the tourism department and the taxation and revenue
	196	+	department to study the economic contributions, workforce
	197	+	housing benefits, taxation policies and regulatory
	198	+	considerations of short-term rentals statewide; and
	199	+	BE IT FURTHER RESOLVED that this work group be composed of
	200	+	representatives from the economic development department, the
	201	+	tourism department, the taxation and revenue department, the
	202	+	New Mexico short-term rental association, the New Mexico
	203	+	association of realtors and the assessors affiliate of the New
	204	+	Mexico association of counties, ensuring a collaborative and
	205	+	data-driven approach to short-term rental policy evaluation;
	206	+	and
	207	+	BE IT FURTHER RESOLVED that the study evaluate short-term
	208	+	rental taxation policies, the impact of nonresidential property
	209	+	.231486.3
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	237	+	tax classifications, zoning and permitting regulations and
	238	+	potential pathways for a fair and balanced regulatory framework
	239	+	for short-term rental operators and local communities; and
	240	+	BE IT FURTHER RESOLVED that the work group report its
	241	+	findings and policy recommendations to the appropriate interim
	242	+	legislative committees by December 1, 2025; and
	243	+	BE IT FURTHER RESOLVED that county assessors be requested
	244	+	to suspend further reclassification of short-term rental
	245	+	properties from residential to nonresidential until the
	246	+	completion of the study, ensuring that policy recommendations
	247	+	are based on data and economic analysis; and
141	248		BE IT FURTHER RESOLVED that copies of this memorial be
142	249		transmitted to the secretary of economic development, the
143	250		secretary of tourism, the secretary of taxation and revenue,
144	251		the New Mexico short-term rental association, the New Mexico
145	252		association of realtors and relevant local government
146	253		associations for appropriate distribution.
	254	+	- 5 -
	255	+	.231486.3