Rio Rancho, NM Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross taxable rent
- Applies to
- Hotels, motels, short-term rentals
- License required
- Lodger's tax license from Treasurer
- Exemption
- Stays of 30+ consecutive days
- Audit penalty
- Greater of 10% or $100
Summary
Rio Rancho charges a 5% occupancy tax on gross taxable rent for hotels, motels, and short-term rentals, and vendors must hold a lodger's tax license before renting rooms in Sandoval County's largest suburb.
TAXABLE PREMISES. A hotel, motel, short-term rental unit or other premises used for lodging that is not the vendee's household or primary residence. ... There is hereby imposed an occupancy tax of revenues of 5% of gross taxable rent for lodging within the municipality paid to vendors.
Full Breakdown
Under City Code § 37.02, Rio Rancho imposes a 5% occupancy tax on gross taxable rent paid for lodging, defined to include hotels, motels, short-term rental units, and any other paid lodging that isn't the guest's primary residence. Vendors must obtain a lodger's tax license from the City Treasurer before renting, file monthly reports by the 25th, and remit the tax collected. The Treasurer audits at least two lodging vendors yearly, one hotel/motel and one short-term rental, under NMSA § 3-38-17.1. Stays of 30+ consecutive days and rents under $2 a day are exempt.
Violations & Fines
Operating without a lodger's tax license, or failing to collect and remit the tax, draws a civil penalty of the greater of 10% of the unpaid amount or $100, plus license revocation and possible district court collection action.
Frequently Asked Questions
Does Rio Rancho's occupancy tax apply to Airbnb and short-term rentals?
Who is exempt from Rio Rancho's lodger's tax?
Sources & Official References
Other rules in Rio Rancho
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