New Mexico Statewide Rule
New Mexico Lodgers Tax and Gross Receipts on Short-Term Rentals
Key Facts
- Maximum lodgers tax
- 5% of gross rent
- Stay threshold
- Under 30 days
- State authority
- NMSA 3-38-13
- Gross receipts tax
- Applies statewide
- Registration agency
- NM Taxation and Revenue
Summary
New Mexico authorizes municipalities and counties to levy a lodgers tax up to 5% on stays under 30 days, and the state imposes gross receipts tax on all short-term lodging revenue statewide.
A. A municipality may impose by ordinance an occupancy tax for revenues on lodging within the municipality, and the board of county commissioners of a county may impose by ordinance an occupancy tax for revenues on lodging within that part of the county outside of the incorporated limits of a municipality. B. The occupancy tax shall not exceed five percent of the gross taxable rent.
Full Breakdown
Under the Lodgers' Tax Act (NMSA 3-38-13 et seq.), municipalities and counties may impose an occupancy tax of up to 5% on lodging stays under 30 consecutive days, including short-term rentals booked through platforms. Revenue must be used for tourism promotion or related public infrastructure. Separately, the state Gross Receipts and Compensating Tax Act (NMSA 7-9) applies state and local gross receipts tax to short-term rental income regardless of platform. Hosts must register with the New Mexico Taxation and Revenue Department, obtain a CRS identification number, and remit taxes monthly or quarterly.
Violations & Penalties
Failure to collect or remit lodgers tax and gross receipts tax may result in penalties, interest, audit assessment, and potential revocation of business registration with the state.
Frequently Asked Questions
Do I owe both lodgers tax and gross receipts tax?
Are stays over 30 days exempt?
Sources
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