We have exciting news to share: House Memorial 52 (HM 52) has been officially introduced by Representatives Rebecca Dow and Jonathan Henry and read on the NM House floor. It has now been assigned to the House Commerce & Economic Development Committee. This is a significant first step toward safeguarding short-term rentals in New Mexico and ensuring a fair and balanced approach to our industry!
What Does HM 52 Do?
- Calls for a Short-Term Rental Work Group: The Economic Development Department, the Tourism Department, and the Taxation and Revenue Department will collaboratively study short-term rental economic contributions, workforce housing benefits, taxation policies, and regulatory considerations.
- Suspension of Reclassification: The memorial requests county assessors to suspend reclassifying short-term rentals from residential to non-residential until the study is completed, preventing sudden and potentially devastating tax hikes.
- Ensures a Data-Driven Process: By December 1, 2025, the work group will provide their findings and policy recommendations to key legislative committees, helping create long-term, sustainable policies for our industry.
Why This Matters
- Certain NM county assessors have begun reclassifying short-term rentals from residential to nonresidential. This change:
- Removes the 3% annual property value cap that protects homeowners from steep tax hikes.
- Forces short-term rentals to be taxed at a higher rate, causing potentially crippling cost increases.
- Threatens the stability of thousands of homeowners who rely on short-term rental income to meet mortgages, property taxes, and upkeep costs.
By supporting House Memorial 52, we have a chance to pause these reclassifications and allow a thorough study that will present a fair, data-driven solution.
Next Steps: We Need Your Help!
We anticipate a committee hearing soon, where several (including myself) will testify about the vital economic role short-term rentals play across New Mexico. Your personal stories are crucial to convincing legislators that short-term rentals must remain classified as residential.
Draft a Personal Letter to Your State Representative
- Make it personal: Explain why your short-term rental is vital to your livelihood or your family’s financial security.
- Share your investment: Highlight the time, money, and energy you’ve put into maintaining your property.
- Explain the hardship: If reclassified, how would the new taxes or potential shutdown affect your ability to pay your mortgage, taxes, or other bills?
- Describe your unique situation: Are you a resident who travels for work? Is this rental your only retirement plan? Have you used it to support other family members?
- Keep it real: Lawmakers pay far more attention to genuine, heartfelt letters than form emails.
Be Prepared to Send Your Letter
As soon as we have a hearing date and more concrete instructions, we will let everyone know when and how to send their letters. Let’s make sure every House member hears from real people who will be directly impacted!
The Bigger Picture
Short-term rentals are a cornerstone of New Mexico’s tourism and workforce housing. From providing lodging for traveling professionals to generating millions in lodging tax revenue, supporting local businesses, and helping homeowners keep their properties. If we lose our residential classification, we risk not just individual homes but the broader housing market and tourism-dependent communities.
Now is the time to show our strength in numbers and our passion for our homes and livelihoods. Together, we can ensure that short-term rentals remain residential and that we have a seat at the table as New Mexico shapes its future housing and tax policies.
Stay Tuned for More Updates
Thank you for your continued support. We will share more details on the hearing date and next action steps very soon. For now, start drafting your letter, and be ready to make your voice heard, Have a great weekend!
In solidarity,
The Board of the New Mexico STRA