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 evaluate the contributions of short-term rentals to the economy, their role in providing workforce housing, and the implications of recent reclassifications of these properties for taxation purposes.

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 aims to prevent potential economic and legal ramifications for short-term rental owners and operators while ensuring that any policy recommendations are informed by data and thorough analysis. The work group is expected to report its findings and recommendations to the appropriate interim legislative committees by December 1, 2025.