Key Take‑aways

• Yes – short‑term rentals are permitted in Las Cruces. The City requires registration, collection & remittance of a 5 % Lodger’s Tax, and compliance with all city codes.
• The adjacent Doña Ana County also regulates STRs through Ordinance 316‑2020 – a separate county‑level business registration, permit, insurance, parking, fire‑safety, and community‑notification regime.
• State of New Mexico imposes a Gross‑Receipts Tax (GRT) on lodging (≈ 5 % on gross receipts) and a separate State Lodger’s Tax; businesses must register with the New Mexico Taxation & Revenue Department and file/pay quarterly.
• Step‑by‑step: obtain a City registration & Lodger’s Tax account, secure a County business registration & permit (if the property lies outside the City limits), acquire required insurance, install safety devices, set up a 24‑hr complaint line, and open the required state tax accounts.

Below is a detailed, investor‑focused playbook covering every requirement, fee, timeline, and source of authority.

1. Overview – Are STRs Allowed?

City of Las Cruces – Allowed. The City amended Ordinance #2906 (effective Jan 1 2020) to include short‑term rentals. Operators must register the property, pay a 5 % Lodger’s Tax, and follow all City codes (parking, noise, housing, building, fire).

Doña Ana County – Allowed (with county rules). Ordinance 316‑2020 (adopted Dec 8 2020) regulates STRs that lie outside the City limits or on County‑owned land. Operators must obtain a County business registration certificate and a County STR permit before leasing.

State of New Mexico – Allowed subject to state taxation (GRT ≈ 5 % on gross receipts, plus a State Lodger’s Tax of 5 % on lodging revenue). A State Tax ID and GRT filing are mandatory for any commercial lodging activity.

2. City of Las Cruces – Requirements & Process

| Requirement | Details | How to Satisfy | |-------------|---------|----------------| | STR Registration | Mandatory for each property. Initial fee: $50 (one‑time). | Complete the City STR Registration Form (see “Forms” below) and submit to the Cashier’s Office (700 N Main St) or via the online portal. | | Lodger’s Tax (5 %) | Imposed on gross taxable rent of all lodging establishments, including STRs. Tax is due by the 25th of each month for the prior month’s revenue. | File a monthly Lodger’s Tax Form (available at the same portal) and remit payment. Late payments incur 10 % penalty or $100 (whichever is greater) plus 1 % monthly interest. | | Online Payment & Registration Platform | City partners with Granicus to host a self‑service portal. | Access: <lascrucesnm-self.govplatform.com/> | | Compliance with City Codes | STRs must adhere to parking, noise, housing, building, and fire‑life‑safety codes. The City may inspect with 24‑hour notice. | Review the Short‑Term Rental Self‑Inspection Safety Checklist (PDF) and keep it on file. | | Insurance | No explicit minimum in the City code, but operators should maintain property and general liability coverage (best practice). | | Complaints |