Las Cruces, NM Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross taxable rent
- License authority
- City manager (lodgers' tax)
- Monthly filing deadline
- 25th of the following month
- Late penalty
- 10% or $100, whichever greater
- Stay exemption
- 30+ consecutive days as resident
- Revenue use
- 50% must fund tourism promotion
Summary
Las Cruces charges a 5 percent lodgers' tax on gross taxable rent for hotel, motel and short-term lodging stays. Every vendor renting rooms must hold a city lodgers' tax license from the city manager, collect the tax as a trustee for the city, and remit it monthly by the 25th. Guests staying 30-plus days are exempt.
There is imposed an occupancy tax of revenues of five percent of gross taxable rent for lodging paid to vendors. ... No vendor shall engage in the business of providing lodging in the city who has not first obtained a license as provided in this section. ... Any person who violates this article by failure to pay the tax, to remit the proceeds thereof to the city, or to account properly for any lodging tax proceeds pertaining thereto shall upon conviction be punished as provided in section 1-10.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 33 | Land Development Code: Supplement 28).
Full Breakdown
Article III of the Municipal Code, the Lodgers' Tax article, imposes an occupancy tax of five percent of gross taxable rent on lodging paid to vendors under Sec. 16-64. The tax reaches hotels, motels, apartment hotels, guesthouses, guest ranches, mobile homes, trailer courts and other taxable premises defined in Sec. 16-61. Sec. 00 a day, and exempts federal, state, religious, charitable, educational, medical and nursing-home lodging. Before renting rooms, a vendor must obtain a license under Sec. 16-66 by applying to the city manager with the vendor's name, room count and rate schedule, other services offered, and the state revenue division identification number; the city manager must grant or deny the license within ten days, with written notice of denial and a right to appeal to the city council within 15 days.
Sec. 16-67 makes every licensed vendor a trustee who must collect the tax separately from rent and file a monthly report with the city treasurer by the 25th of the following month. Half of net lodgers' tax revenue, after collection costs, must fund advertising and promotion of city tourist facilities under Sec. 16-62(b).
Violations & Fines
Failing to pay the tax or file a return triggers a penalty of ten percent of the tax due or $100.00, whichever is greater, plus one percent monthly interest, under Sec. 16-69. The city treasurer may estimate the tax owed and assess it with the same penalty if a vendor refuses to file. Unpaid balances 15 days after written notice can be pursued in magistrate or district court, including collection costs and attorney's fees, and Sec. 16-70 makes any failure to pay, remit or account for lodgers' tax proceeds punishable under the general penalty in Sec. 1-10.
Frequently Asked Questions
Does the Las Cruces lodgers' tax apply to Airbnb and short-term rentals?
What happens if a hotel does not pay the lodgers' tax on time?
Who is exempt from the Las Cruces lodgers' tax?
Sources & Official References
Other rules in Las Cruces
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