WeVote
Log In

Bill

Bill

HM 52

SHORT-TERM RENTAL WORK GROUP

2025 Regular Session Introduced by Rebecca Dow and 1 co-sponsor

Directs a multi-stakeholder study group to assess STR economics, taxation, zoning, and regulation; pauses STR reclassification pending study; report due by Dec 1, 2025.

Signed
#memorials #other
0
WeVote Research Nonpartisan
Bill Summary · HM 52

Summary — HM 52: Short‑Term Rental Work Group (Memorial)

Status: Signed (House Memorial 52)
Introduced: March 5, 2025 — Signed April 22, 2025
Classification: Memorial (requests agency action; does not create law or carry appropriation)

Purpose

HM 52 directs state agencies to form a multi‑stakeholder work group to study the economic role, taxation treatment, zoning/permitting, and regulatory framework for short‑term rentals (STRs) across New Mexico. It also requests that county assessors suspend reclassification of STR properties from residential to nonresidential until the study is complete.

Key provisions

  • Adopts the Lodgers’ Tax Act definition of “short‑term rental”: a furnished accommodation rented for less than 30 consecutive days (including single‑family homes, condominiums, apartments, casitas).
  • Directs the Economic Development Department (EDD), the Tourism Department, and the Taxation and Revenue Department (TRD) to establish and convene the work group.
  • Requires the work group to evaluate:
    • Economic contributions of STRs and workforce housing benefits;
    • Taxation policies and the implications of nonresidential property tax classification;
    • Zoning and permitting rules; and
    • Pathways to a “fair and balanced” regulatory framework for operators and local communities.
  • Requests county assessors suspend further reclassification of STR properties from residential to nonresidential until the work group issues its report.
  • Requires the work group to report findings and policy recommendations to the appropriate interim legislative committees by December 1, 2025.
  • Adds the Governor’s Office of Housing and the Mortgage Finance Authority to the work group membership in the committee substitute.

Work group composition (selected)

  • EDD, Tourism Department, TRD
  • Governor’s Office of Housing
  • Mortgage Finance Authority (MFA)
  • New Mexico Short‑Term Rental Association
  • New Mexico Association of Realtors
  • Assessors affiliate of the New Mexico Association of Counties

Timeline & procedural notes

  • Report due to interim legislative committees by December 1, 2025.
  • As a memorial, HM 52 requests action but does not create binding legal obligations or appropriate funds.

Fiscal implications

  • Memorials carry no appropriation and do not directly change tax revenues.
  • Legislative Finance Committee (LFC) assumes EDD can likely convene the work group within existing resources but notes possible minimal additional costs (e.g., contractor). LFC estimates at least $50,000 may be needed for a dedicated tax analysis.
  • Reclassification of STRs to nonresidential status (if later pursued) could increase property tax liabilities because residential valuations are capped differently (e.g., residential annual cap historically around 3% vs. up to 30% for nonresidential valuation adjustments).

Who is affected

  • Short‑term rental owners/operators and homeowners using STRs
  • County assessors and local governments (zoning/permitting authorities)
  • Tourism industry and local economies (especially in Bernalillo, Santa Fe, Lincoln, Taos counties)
  • Renters and housing market dynamics (potential impacts on housing availability and affordability)

Potential outcomes

The study may produce data and recommendations that lead to future rule changes or legislation on taxation, classification, and local regulation of STRs. The memorial’s request to pause assessor reclassifications is advisory, not mandatory.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.