HM52 is a memorial requesting the Economic Development Department, the Tourism Department, and the Taxation and Revenue Department to create a work group to study short-term rentals across New Mexico. The study is intended to examine the economic contribution of short-term rentals, their role in workforce and temporary housing, and the state’s current taxation, zoning, permitting, and regulatory framework. The memorial specifically notes that short-term rentals include furnished accommodations rented for fewer than 30 consecutive days and may encompass homes, condos, apartments, and casitas.
The memorial also asks the work group to evaluate the effects of county assessors reclassifying short-term rental properties from residential to nonresidential for property tax purposes. It directs the group to develop findings and policy recommendations by December 1, 2025, and asks county assessors to suspend further reclassification until the study is complete. The work group would include state agencies and stakeholders such as housing and mortgage finance entities, the short-term rental industry, realtors, and county assessors.
Impact
HM52 does not directly change state law, but it seeks to influence future policy by creating an interagency study process and recommending a temporary pause on reclassification of short-term rentals for property tax purposes. If followed, the memorial could affect how county assessors treat short-term rental properties in the near term and could shape later legislation or administrative action on taxation, zoning, and permitting. The measure is aimed at statewide short-term rental policy, with implications for property owners, local governments, tourism businesses, and workers who rely on temporary lodging.
Sentiment
The overall sentiment appears supportive and cautious rather than adversarial. The memorial frames short-term rentals as economically important to tourism and as a housing option for traveling workers, while also acknowledging concerns about taxation and regulation. The unanimous House final passage vote of 62-0 suggests broad agreement with studying the issue before making permanent changes.
Contention
The main point of contention is the reclassification of short-term rental properties as nonresidential for tax purposes. Supporters of the memorial appear concerned that such reclassifications could raise tax burdens, create compliance problems, and force some owners out of the market. On the other side, county assessors and local governments may view reclassification as a legitimate tax and regulatory issue, but the memorial does not present direct opposition; instead, it seeks to slow further action until a data-driven study is completed.