Short-term rentals in Ruidoso, explained properly.

The application must give the maximum number of occupants and vehicles the dwelling unit can accommodate, with occupancy per sleeping unit at no more than two adults. A sleeping unit follows the International Building Code definition: a room or space in which people sleep, which can also include permanent provisions for living, eating, and either sanitation or kitchen facilities, but not both. When the Village grants a permit it specifies the maximum number of cars and the maximum number of occupants allowed. Occupancy beyond the permitted number counts as an unresolved issue for suspension purposes.

The parking calculation in the application is based on a minimum of one off-street parking space per sleeping unit, and the property must also meet parking requirements. The permit specifies the maximum number of vehicles; vehicles parked beyond that number count as an unresolved issue. The notice posted in the unit must give the number of on-site spaces and any seasonal snow-removal parking rules. We haven't reviewed the Village's general parking standards yet.

Compliance inspections are required on all permits and are repeated annually; the Village may also inspect at other intervals or when a violation is alleged. Staff inspect at a time the owner, agent or representative schedules. If the property does not conform, the Village issues a correction notice and may charge a reinspection fee. Items checked include an ABC fire extinguisher (3 to 5 lbs.) mounted at egress points, at least one per floor and at least one per dwelling unit (two if the unit is over 1,000 square feet), mounted 48 to 60 inches from the floor; working smoke alarms in and near every sleeping room and on every level including the basement; a clear path of travel to the outside and sleeping-area windows at least 20 inches wide by 24 inches tall, no more than 44 inches from the floor; an emergency ladder or steps where egress is more than 20 feet from the ground; properly maintained outdoor cooking appliances with a posted notice of permitted use (Sec. 42-42) and inspected indoor fireplaces; and a NOAA-approved emergency notification device in clear view in each unit.

Only propane or natural gas fire pits, fire tables or similar devices with a controlled flame and an accessible shutoff valve are permitted, and any other outdoor burning is prohibited at all times. The tenant notice must say the Code prohibits ground fires, campfires, fire rings and fire pits at any short-term rental in the Village. The Code says that if an owner or operator engages in or permits outdoor burning, including with a prohibited wood-burning device, the permit is immediately suspended and may be revoked, and an owner or occupant engaged in outdoor burning is guilty of a violation and is cited into municipal court. Failure of the local contact to respond to an outdoor burning violation within 30 minutes is also an unresolved issue. The Code's text for this clause has apparent typographical errors, so confirm the current wording with the Village.

Failure of the local contact to respond to an alleged occupancy, parking, noise or outdoor burning violation within 30 minutes, by telephone, email or text message from the Village or a third-party monitoring agency, is an automatic unresolved issue. Occupancy, parking and noise issues are also unresolved if not rectified within 90 minutes from the time the Village contacts the emergency contact. The Village sends written notice of each unresolved issue to the owner and management company within three business days. Unresolved issues count toward permit suspension and revocation.

Each unit must have a clearly visible, legible notice on or next to the interior of the front door, posted by the owner or managing agency. It must include a copy of the permit; the name and 24-hour, seven-day phone number of the managing agency, agent, property manager, local contact person or owner; the maximum occupants three years of age and older; the maximum vehicles; on-site parking spaces and seasonal snow-removal parking rules; trash and refuse disposal procedures; a notice that occupants may be cited and fined for disturbances and other Code violations; a notice that the noise provisions of Sec. 38-31 are enforced; the ban on ground fires, campfires, fire rings and fire pits; the 911 address; notice that the leash laws of Sec. 14-8 are enforced; the Sec. 42-40 rule on discarding lit cigarettes and similar material; a link to online information and the complaint process; how to register for local emergency alerts; and any additional health and safety information the Village provides.

Signage is permitted only if it includes the name of the dwelling unit or the owner's name and does not advertise the property as available for short-term rental.

The Code says nothing in Section 54-72 abridges the ability of bona fide neighborhood covenants or deed restrictions to be more restrictive. The Village does not enforce them; property owners are responsible for complying with the covenants in their neighborhood. A permit from the Village therefore does not settle whether a covenant bars short-term rental.

An application or renewal is denied if any of these apply: applicable fees and taxes, including lodgers' taxes under Chapter 78, Article II, have not been paid; outstanding property nuisance, fire code or building code violations exist; the applicant has not met the fuels management certification requirements of Sec. 42-80; or the property is delinquent in village utilities. Failure to comply with Chapter 78 may lead the planning administrator to suspend the permit until the delinquent taxes are paid, and no short-term rentals are allowed during that suspension. The Village recommends that all owners buy short-term rental insurance. We haven't reviewed Chapter 78 or Sec. 42-80, so the lodgers' tax rate and the fuels management requirements are not described here.

The Village notifies the owner that renewal is due 60 days before expiration, and failing to renew within 30 days after the expiration date triggers a late renewal penalty fee. Before expiration, or when the information in the permit changes regarding ownership, the structure or parking area, or the contact person, a new permit application is submitted. A transfer fee set in Appendix A applies to owners moving the permit from a managing agency to themselves, with a compliance inspection and reinspection fee at the time of transfer; moving a property from one managing agency to another requires a new permit and inspection. An owner who stops short-term renting files a statement with the Village and the permit is closed; resuming requires a new permit.

Section 54-72 says application and inspection fees are set out in Appendix A to the Code, that the application fee is non-refundable, and that a transfer fee in Appendix A applies when an owner moves the permit from a managing agency to themselves. A reinspection fee may be assessed when an inspector must return, and a late renewal penalty fee applies after the 30-day renewal window. We haven't reviewed Appendix A, so the amounts and the date of the fee schedule are not shown here.

Besides other Code penalties, the owner pays a penalty set in Appendix A to obtain, retain or renew a permit. Each day an owner rents without first obtaining a permit, or rents while the permit is suspended, is a separate violation under Sec. 1-6. The first suspected or observed violation may result in a warning requiring the owner to register immediately; if the owner does not comply after that notice, penalties may be assessed under Sec. 1-6, including a registration fee of twice the listed amount. The code enforcement officer or another designated village employee takes action to correct the violation under the Code or state statute. We haven't reviewed Appendix A or Sec. 1-6, so dollar amounts and any jail terms are not shown here.

The planning administrator suspends a permit for any property with three unresolved issues within a 12-month period, for no more than 60 days, and may revoke it if more than three unresolved issues occur within 12 months or the owner has committed a violation of the Code. Unresolved issues are occupancy beyond the permit, vehicles beyond the permit, a noise violation, and the local contact's failure to respond within 30 minutes to an occupancy, parking, noise or outdoor burning violation. The administrator's written notice of a final decision is the suspension or revocation. A property may not be leased as a short-term rental during a suspension. An owner whose permit is revoked may not lease a short-term residential rental for 364 days from the date the permit was suspended. An aggrieved person with standing may appeal to the planning commission by filing in writing within five working days of the decision; that appeal is de novo. A final planning commission decision may be appealed to the village council within 30 working days of the decision and recordation of the final order, on the record, and a council decision may be appealed to district court under NMSA 1978, Sec. 39-3 and Rule 1-074 NMRA.

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.