Albuquerque, Taos pass new short-term rental laws

The mayor of Albuquerque, New Mexico, has signed a new short-term rental law that will require hosts to register with the city in order to operate a short-term rental, defined as a unit that is rented for 29 days or less. The ordinance, which was approved on October 13, takes effect in six months.

The short-term rental permit will cost $120, with renewals at $90. Hosts must include their city-issued short-term rental permit in any advertising and display a copy within the rental unit as well. They’re also required to display a current Good Neighbor Agreement, which informs guests about short-term rental rules, and designate an agent who can be available 24 hours a day, seven days a week to respond to issues.

The law limits the number of people who can stay in a short-term rental or gather there for an event, and specifies that large events must end at 10 p.m. The new rules also require hosts to have short-term rental insurance coverage of at least $250,000.

Hosts who break the new law can be fined $500 per day for violations. The city can revoke licenses of hosts who have three violations within 12 months.

According to the measure, the mayor will appoint a short-term rental representative to the city’s Lodgers’ Tax Advisory Board. Short-term rental operators will also be required to collect local lodging taxes from guests, including Albuquerque lodgers’ tax and hospitality fee. Albuquerque short-term rental hosts are required to register with the city, collect the tax and fee from guests, and file monthly returns and payments.

All New Mexico short-term rental hosts are also required to pay the state’s gross receipts tax, which they can pass on to guests. Airbnb and Vrbo collect New Mexico gross receipts tax and the city lodgers’ tax and hospitality fee on behalf of Albuquerque hosts when guests pay for their bookings.

Albuquerque is not the only New Mexico city to regulate vacation rentals. Taos recently updated its law to limit the number of short-term rentals to 120. Currently, between 160 and 180 vacation rentals are operating in Taos. Property owners will have to reapply for short-term rental permits in January.

Taos passed regulations last year requiring owners of short-term rentals to register with the town. Operators must also have a local contact available at all times, inform guests about city rules, and have safety features such as smoke detectors, carbon monoxide detectors, and fire extinguishers.

Taos vacation rental hosts must also collect local lodgers’ tax and gross receipts tax. Vrbo and Airbnb collect state gross receipts tax on behalf of Taos short-term rental hosts, but only Airbnb collects the local Taos lodgers’ tax for its hosts.

In 2016, Santa Fe also passed short-term rental rules requiring vacation rental operators to get an annual permit. Short-term rental permits in residential areas are capped at 1,000, and operators are only allowed to rent out the property once during a seven-day period. The Santa Fe City Council’s Public Works and Utilities Committee has recently considered a new measure that would limit each short-term rental owner to one permit.

MyLodgeTax can help all New Mexico short-term rental hosts comply with lodging tax requirements, from registration to filing. For more on short-term rental taxes in New Mexico, see our state Vacation Rental Tax Guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.