SB 207 LODGERS' TAX, AFFORDABLE HOUSING & RENTALS

Sen Peter Wirth

Actions: [2] SCC/STBTC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 207 (SB 207) authorizes an occupancy surtax (surtax) on certain short-term rentals (STR). SB 207 requires local governments to impose the surtax and use the proceeds to support the cost of affordable housing. SB 207 modifies the form requirements for notice of evaluations to property owners and repeals a statute that requires property be presumed nonresidential.  

 Senate Bill (SB 207) authorizes an occupancy surtax (surtax) on certain short-term rentals (STRs) and requires that local governments use the proceeds for affordable housing or to leverage federal funding for such housing. The surtax is in addition to the current statutory Occupancy Tax. Local governments may impose both. The surtax is imposed by ordinance and cannot exceed 2.5% of taxable rent of single-family STRs. 

SB 207 defines affordable housing as housing for those with income at or below 80% of the area’s median income. Single-family rental is a residence for rent for less than 30 days. At least one room or unit is rented by a vendor through advanced reservations. Excluded are hotels, lodging houses, bed and breakfasts, and time-share properties. 

STRs are excluded from the definition of residential property. SB 207 requires the notice of valuation to include a form completed by the taxpayer to notify the county assessor of mailing address updates, or changes in the classification of the property, or to claim an exemption or limitation on the increases in valuation.

SB 207 repeals Section 7-38-17.1 NMSA 1978 that establishes property subject to taxation be recorded non-residential until the owner declares the property residential.
 

 SB 207 relates to HB 247.