Short-term rentals, including Airbnbs, have steadily grown in popularity for overnight stays in New Mexico, including San Miguel County. These forms of rental were widely popular during the pandemic as they allowed for a more isolated stay and were not regulated like many hotels at the time. This popularity expanded after the Hermits Peak/Calf Canyon fire, with over 80 short-term rentals currently operating across the county.
Some operators may believe it’s an easy way to make money with few regulations, but it’s not. All short-term rentals are required to obtain a business license and pay tourist tax, just as hotels in the county are required to do. Under local law they are required to operate in a very similar way.
As of 2020, the passage of New Mexico Senate Bill 106 closed a previous loophole that exempted short-term rental hosts offering fewer than three bedrooms from collecting tenant tax. This means that all short-term rental hosts, regardless of the number of bedrooms they offer, must pay local tenant tax in communities that levy this tax as well as gross receipts tax. This process involves registering with the appropriate tax authority, collecting taxes from guests, and filing lodging tax returns. San Miguel County and the City of Las Vegas collect 5%.
In April 2022, San Miguel County passed a new tenant tax ordinance that included a short-term rental approval process. The order requires individuals to obtain a business license to operate rentals for periods of less than 30 days, in addition to paying fees of $150 for an initial license and $100 for annual renewals. This app includes RV parks and RV hookups. A fire inspection will also be required, as well as a building inspection for existing structures.
Tracking the exact location of short-term rentals is not easy for any government entity, as websites conceal much of the information for tenant safety. San Miguel County officials said they will step up their app with purpose-built, third-party software to locate short-term rentals, as many other New York cities and counties have done. -Mexico.
Amanda Salas, director of planning and zoning for San Miguel County, along with other county officials, are trying to find a solution to this problem.
“It’s especially important for the county to know where these short-term rentals are and to require the necessary guidelines for safe operation,” Salas said. “Short-term rentals can be very beneficial for tourism, but they must meet accommodation standards for public health, safety and the well-being of paying guests.”
Over the past year, short-term rentals have increased, not only due to recreational tourism, but due to the increased presence of contractors in the area during the Calf Canyon/Hermits Peak fire and now due of the recovery phase of the incident.
The increase in short-term rentals appears to have significantly affected long-term rentals, leaving many people without options for living in the community for those who lost their homes in the fire, making it impossible to be close to family. The long-term rentals that do exist are often in poor condition and overpriced.
The City of Las Vegas and San Miguel County have faced a long-term housing shortage for years in an already tight housing market. Since short-term rentals are usually found in residential areas, tourists occupy space that otherwise could be used for permanent living. With no limits put in place on short-term rentals, it looks like they could continue to add an additional burden to long-term rental accommodation.
“Another big reason we’re taking the necessary steps to allow these short-term rentals is to look at the data,” Salas said. “We need to determine where short-term rentals impact current permanent housing and how to proceed at this stage. There is room around the table for all initiatives but there must be a balance for a community to function effectively.
The county encourages the operation of short-term rental units to begin the compliance process now before any applications begin. The county ordinance, like the city’s short-term rental ordinance, allows county officials to charge a $500-per-day fee for noncompliance.
The tenant tax allows government entities to advertise, publicize and promote tourism and attract people to the community. In theory, the more money that goes into the tenant’s tax fund, the more the city and county can advertise outside of the community, which draws even more people to local hotels and businesses. short-term rentals, and keeps the tourism industry thriving.
Comments are closed.