The New Mexico Lodgers' Tax was originally enacted in 1969 and gives towns and counties within the state the ability to create, impose and collect an occupancy tax for revenues generated within lodging establishments (typically hotels, motels, cottages, bed-and-breakfast establishments and other lodging businesses).

As enacted by the state, the tax collected may be used to cover the costs of:

• collecting and administering the tax;
• establishing, operating, purchasing, constructing, otherwise acquiring real property or any interest in real property for the site of tourist-related facilities, attractions or transportation systems;
• advertising, publicizing and promoting tourist-related attractions, facilities and events;
• providing police and fire protection and sanitation service for tourist-related events, facilities and attractions;
• principal and interest on certain premiums due in connection with lodgers' tax revenue bonds
• and other administrative functions.

More information on the New Mexico Statute creating the lodgers' tax can be found here. Silver City's lodgers' tax is allocated by the Town Council with the advice and input of the Lodgers' Tax Advisory Board.