HM 52 — SHORT-TERM RENTAL WORK GROUP

HOUSE COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTE FOR HOUSE MEMORIAL 52 57TH LEGISLATURE - STATE OF NEWMEXICO - FIRST SESSION 2025 4 6 8 10 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-TERMSHORT- TERM RENTAL PROPERTIES UNTIL COMPLETION OF THE STUDY.

e9 t 17 w l n d 18 WHEREAS, the Lodgers' Tax Act defines a short-term rental = = 19 a l as a furnished accommodation rented for less thenthan thirty i a e r 20 consecutive days.

This definition encompasses various property a t m m 21 types, including single-family homes, condominiums, apartments d r e 22 and casitas;

and c e s k 23 WHEREAS, short-term rentals have become an increasingly e a n b 24 significant part of New Mexico's tourism economy, providing u [ essential accommodations for visitors and serving as a critical .231958.1 HCEDC/HM 52 component of the state's hospitality industry;

and WHEREAS, some county assessors in New Mexico have begun reclassifying short-term rental properties as nonresidential HCEDC/HM 52 for taxation purposes, creating potential implications for Page 1 property tax rates and regulatory compliance for short-term rental owners and operators;

e t 17 NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF w l n d 18 REPRESENTATIVES OF THE STATE OF NEW MEXICO that a short-term = = 19 rental work group be established by the economic development a l i a e r 20 department, the tourism department and the taxation and revenue a t m m 21 department to study the economic contributions, workforce d r e 22 housing benefits, taxation policies and regulatory c e s k 23 considerations of short-term rentals statewide;

and e a n b 24 BE IT FURTHER RESOLVED that this work group be composed of u [ representatives from the economic development department, the .231958.1 - 2 - HCEDC/HM 52 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-termshort- term rental taxation policies, the impact of nonresidential HCEDC/HM 52 Page 2 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 county assessors be requested e t 17 to suspend further reclassification of short-term rental w l n d 18 properties from residential to nonresidential until the = = 19 completion of the study, ensuring that policy recommendations a l i a e r 20 are based on data and economic analysis;

and a t m m 21 BE IT FURTHER RESOLVED that copies of this memorial be d r e 22 transmitted to the secretary of economic development, the c e s k 23 secretary of tourism, the secretary of taxation and revenue, e a n b 24 the New Mexico short-term rental association, the New Mexico u [ association of realtors and relevant local government .231958.1 - 3 - HCEDC/HM 52 associations for appropriate distribution.

-HCEDC/HM 452 -Page 43 625 8 10 12 14 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .231958.1