Short-term rentals in Albuquerque, explained properly.

Overnight occupancy is limited to two adults per bedroom plus two more adults for each unit, except studios and efficiencies, so a two-bedroom house may have six adults overnight and a three-bedroom house eight. For this rule an adult is anyone over 12 years old. The Planning Department's FAQ explains the extra two as an allowance for a pull-out couch.

Gatherings larger than the overnight occupancy may not exceed two times the overnight limit or 20 people, whichever is less, and must end with attendees gone by 10:00 p.m. local time.

Each operator must keep short-term rental insurance of at least $250,000 per unit, covering damage to guests caused by the operator and damage the operator or guests cause to other people, including neighbors. The FAQ says the applicant must check whether a platform's coverage meets this and upload proof of coverage for the insured property.

Each operator must display a copy of the permit inside the unit, include the City permit number on all marketing for that unit, and post a current Good Neighbor Agreement inside the unit. The Planning Department provides the Good Neighbor Agreement each year; it tells guests the overnight and gathering limits and the City ordinances they must follow.

The Zoning Enforcement Officer enforces the ordinance. A violation notice is mailed to the operator's agent (or the owner of record) and gives a 30-day grace period to comply. After that the owner or responsible party is subject to the City's general penalty, which is a fine of up to $500, up to 90 days in jail or both, with each day a separate offense; the City Attorney may also go to court for an injunction, civil assessments of $500 a day and damages, and City costs can become a lien on the property. If a short-term rental has three or more violations of City ordinances or state statutes within 12 months, its permit is revoked for two years and it must stop operating.

Albuquerque charges an occupancy (lodgers') tax of 5% of gross taxable rent for lodging, which is rent not counting state gross receipts tax or local sales taxes. It does not apply to a guest who has been a permanent resident for at least 30 consecutive days or has a written agreement for at least 30 consecutive days, or when rent is under $2 a day. The operator collects the tax for the City as a trustee and must charge it separately from the rent.

Albuquerque also charges a hospitality fee of 1% of gross taxable rent for lodging. For this fee, gross taxable rent does not include state gross receipts tax, the lodgers' tax or local sales taxes. The fee does not apply to stays by permanent residents of at least 30 consecutive days or under written agreements of at least 30 consecutive days. Half of it pays for tourism advertising and half to equip and furnish the Albuquerque Convention Center. The operator collects it for the City and charges it separately from the rent.

Each operator must file a report by the 25th of each month covering the previous month's lodging receipts and pay the lodgers' tax and hospitality fee due; a report is required for every period even when no tax is due, and the due date moves to the next business day when the 25th falls on a weekend or holiday. The Planning Department's FAQ says operators must still file the monthly report with the City even when a hosting platform remits the lodgers' tax for them. Returns filed without payment owe a penalty of 10% of the tax or $100, whichever is greater. Operators can report and pay on the City's short-term rental website.

City code makes marketplace providers (platforms that advertise lodging and collect payment) responsible for collecting all applicable lodgers' tax and hospitality fees and remitting them to the City, as the operator's agent. The operator must still file the monthly report (see above) and pay any tax on bookings the platform did not collect.

The Short Term Rental Ordinance requires each operator to pay all applicable local, state and federal taxes for each unit, including lodgers' tax, the hospitality fee, gross receipts tax and income taxes, unless the marketplace provider does so for the operator. The gross receipts tax rate for an Albuquerque address is set by the state Taxation and Revenue Department (see the state rules below); no combined lodging tax total is shown here.

The Lodgers' Tax Act (NMSA 1978 sections 3-38-13 to 3-38-25) lets a municipality impose an occupancy tax on lodging within its limits, and a county on lodging outside city limits, by ordinance. The tax may not exceed 5% of the gross taxable rent, which is the rent paid for lodging not counting state gross receipts tax or local sales taxes. Taxable premises are a hotel, motel or other premises used for lodging that is not the guest's household or primary residence. The tax does not apply to a guest who has been a permanent resident of the premises for at least 30 consecutive days or who has a written agreement for at least 30 consecutive days (unless the premises are temporary lodging near the guest's job), or when the rent is less than $2 a day. The person furnishing the lodging collects the tax on behalf of the city or county as a trustee and must charge it separately from the rent. The rate and filing rules that apply in a given place are set by that city's or county's own ordinance.

The Taxation and Revenue Department says gross receipts tax is imposed on businesses and is commonly passed on to the customer, in which case it must be stated separately on the invoice. Gross receipts include money received from leasing or licensing property employed in New Mexico. The rate varies by location because it combines state, county and municipal rates; since July 1, 2025 rates change only in July except in special situations. Marketplace providers without a physical presence in New Mexico are also subject to the tax once they have at least $100,000 of taxable gross receipts in the previous calendar year. State law lets receipts from leasing real property be deducted from gross receipts, but says that receipts hotels, motels, rooming houses, guest ranches or similar facilities receive from lodgers, guests, roomers or occupants are not receipts from leasing real property for that deduction.

The Taxation and Revenue Department says anyone who engages in business in New Mexico must register with it, and that engaging in business means carrying on any activity with the purpose of direct or indirect benefit. After registering, the business receives a New Mexico Business Tax Identification Number, used to report and pay taxes such as gross receipts tax. A marketplace provider without a physical presence in the state is engaging in business once it has at least $100,000 of taxable gross receipts sourced to New Mexico in the previous calendar year.