HCEDC/HM 52
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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 than
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 HCEDC/HM 52
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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 HCEDC/HM 52
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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.