This bill proposes the establishment of a work group by the Economic Development Department, the Tourism Department, and the Taxation and Revenue Department to study the economic impact, taxation, and regulatory framework of short-term rentals in New Mexico. The work group will consist of representatives from various organizations, including the New Mexico Office of Housing and the New Mexico Short-Term Rental Association, to ensure a comprehensive and collaborative approach. The study will focus on evaluating short-term rental taxation policies, the implications of nonresidential property tax classifications, and zoning and permitting regulations, with the aim of developing a fair regulatory framework for short-term rental operators and local communities.

Additionally, the bill requests that county assessors suspend any further reclassification of short-term rental properties from residential to nonresidential until the study is completed. This suspension is intended to prevent potential economic and legal ramifications for short-term rental owners and operators while the work group conducts its analysis. The findings and policy recommendations from the study are to be reported to the appropriate interim legislative committees by December 1, 2025.