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       Sep. 22, 2019                 
 
 
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Town of Silver City
Box 1188
Silver City, NM 88062
575.538.3731

Lodger's Tax Compliance Process for Short-Term Rentals Continues
The Town of Silver City's Community Development Department has successfully registered 15 short‐term rental units, the landlords of which are now required to pay the same five‐percent lodgers' tax that hotel and motel operators pay. This new law was passed during this year's state legislative session and takes effect January 1, 2020, when municipalities throughout the state will begin collecting lodgers' tax on all stays of less than 30 days.

Landlords still have time to comply with the new law, said Jaime Embick, community development director, noting that Manny Jaure, the town's code enforcement officer, has begun contacting landlords who have not yet registered their short‐term rentals. Officer Jaure said that landlords who are not in compliance will be given 15 days to register their rentals before any citations are issued. Violations of the new law will be remanded to Silver City Municipal Court.

"The registration process has gone very well, and we really appreciate all of the landlords who have been proactive and are already in compliance with the new state law," Embick said. "And for those who haven't yet come in, please know there's still plenty of time, and we're here to help make registration easy and fast."

Finding the landlords in the first place required a bit of detective work, said Embick, who perused online rental platforms such as VRBO and Airbnb to locate short-term rentals. Embick, a former town code enforcement officer and Silver City native, was then able to recognize many property addresses to identify the owners.

Silver City landlords are required to pay five percent of gross rental receipts no later than the 25th of each month, and file a report in the billing department at City Hall, 101 W. Broadway Avenue. Reports must be filed even if no income was earned that month. Earnings from short‐term rentals are also subject to the town's eight‐percent gross receipts tax.

But first landlords are required to purchase a business license for each rental property, a process that community development department staff are happy to assist with. Landlords must provide a current driver's license and New Mexico tax identification number, which may be obtained online through the state Taxation and Revenue Department at tap.state.nm.us. The cost of the annual business license is $35, and must be paid at the time of registration.

A site plan is also required for each property, showing the total number and size of sleeping rooms, as well as allotted parking areas. Parking requirements vary depending on where the property is located, with some areas requiring off‐street parking.

Silver City Lodgers' Tax receipts totaled more than $300,000 in the fiscal year which ended June 30. By law, at least 50 percent of lodgers' taxes collected must be used to promote tourism and related activities, while remaining funds may be used to collect and administer the tax, fund tourism‐related facilities, transportation and certain capital improvements.

For more information and to register a short‐term rental, contact Maria Stacy, planning technician, at (575) 597‐7028; email: mstacy@silvercitymail.com.

 
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