How Albuquerque Handles Hotels & Lodging: A Practical Guide

Albuquerque maintains 215 local ordinances across all categories, and 2 of those deal specifically with hotels & lodging. Here is a breakdown of what the city actually requires, what is prohibited, and where Albuquerque falls on the strict-to-permissive spectrum compared to other cities.

Transient Occupancy Tax

Hotels, motels, and short-term rentals in Albuquerque collect a 5% Lodgers Tax, a 1% Hospitality Fee, and state Gross Receipts Tax, producing a combined lodging tax burden of roughly 14% on each night's rent.

Key details: Lodgers Tax: 5%. Hospitality Fee: 1%. GRT: About 7.625%. Combined: About 14%. Filing: Monthly.

Failing to register, under-reporting nightly receipts, or pocketing collected taxes can lead to back-tax assessments, interest, civil penalties, and personal liability for responsible operators.

Hotel Living Wage

Albuquerque applies its local minimum wage and city contractor living wage rules to hotels and hospitality vendors that hold city contracts or subsidies, with the citywide minimum set at $12.97 in 2026 and indexed annually.

Key details: Local minimum: $12.97. State floor: $12. Indexing: Annual CPI. Authority: Ord. 4-2024.

Paying hotel staff below the local minimum wage, misclassifying tipped workers, or evading living wage rules on city-funded projects can lead to back-pay orders, civil penalties, and contract debarment.

The Bottom Line

Albuquerque's hotels & lodging rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Albuquerque is broadly strict or permissive.

All of the above reflects Albuquerque's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.