Important Note: The provided content focuses on Santa Fe County regulations rather than specific Rodeo, NM rules. Since Rodeo appears to fall within Santa Fe County's jurisdiction, the following guide addresses the applicable county and state regulations that would govern short-term rentals in the Rodeo area.

Are Short-Term Rentals Allowed in Rodeo, NM?

Yes, short-term rentals are allowed in Rodeo, NM, but they are strictly regulated under Santa Fe County Ordinance 2022-07 and applicable state regulations.

Based on the Santa Fe County Assessor's correspondence and supporting documentation, short-term rentals are permitted but subject to comprehensive oversight. The county defines short-term rentals as dwellings or portions of dwellings rented for fewer than 30 consecutive days, typically through platforms like Airbnb, VRBO, and similar services.

The regulatory framework distinguishes between "residential" and "non-residential" property classification, with short-term rental operations potentially triggering a change in tax status from residential to non-residential classification.

How to Start a Short-Term Rental Business in This Market

Step 1: Initial Assessment and Planning

• Property Classification Review: Contact the Santa Fe County Assessor's Office to determine your property's current classification and potential tax implications
• Zoning Verification: Confirm that short-term rentals are permitted in your specific zone within the Rodeo area
• Market Analysis: Research local demand and competition, noting that Santa Fe tourism drives significant short-term rental activity

Step 2: Legal Compliance Setup

• Business Registration: Obtain a CRS Business Registration Number through the NM Taxation and Revenue Department
• Short-Term Rental Permit: Apply for the required short-term rental permit under Santa Fe County Ordinance 2022-07
• Compliance Documentation: Prepare all required documentation for the application process

Step 3: Operational Requirements

• Fire Safety Compliance: Arrange for annual inspections by the city Land Use Department under the International Fire Code (12 specific requirements)
• Insurance Review: Update your insurance coverage to reflect commercial short-term rental use
• Tax Registration: Register for applicable taxes including gross receipts tax and lodgers tax where applicable

Required Documents, Permits, Licenses, and Guidelines

Primary Requirements:

1. CRS Business Registration Number (NM Taxation and Revenue Department)
2. Santa Fe County Short-Term Rental Permit (under Ordinance 2022-07)
3. Fire Safety Inspection Certificate (International Fire Code compliance)

Supporting Documentation:

• Property ownership documentation
• Business license/registration proof
• Short-term rental license/registration copy
• Detailed property information including bedroom, bathroom, and kitchen specifications
• Information on dwelling unit occupancy status

Questionnaire Requirements:

The Santa Fe County Assessor requires completion of a Short-Term Rental Questionnaire that includes:

• Business license status verification
• Detailed property description and amenities
• Occupancy history and rental patterns
• Square footage breakdown for rental vs. non-rental areas

Specific Regulations: City, County, and State Level

Santa Fe County Regulations (Ordinance 2022-07):

• Annual Permit Required: All short-term rentals must obtain and maintain current permits
• Inspection Requirements: Annual inspections mandated under International Fire Code
• Compliance Standards: 12-point safety inspection covering fire extinguishers, emergency exits, and safety equipment
• Fee Structure: Current permit fees include a $1,000 annual inspection fee
• Reporting Requirements: Operators must maintain records and provide information to the Assessor's Office

Santa Fe City Regulations:

• Registration: Properties within city limits must register with city authorities
• Zoning Compliance: Must comply with local zoning restrictions
• Tax Collection: City lodgers tax applies to short-term rentals
• Safety Standards: Must meet International Fire Code requirements

New Mexico State Requirements:

• Gross Receipts Tax: State gross receipts tax applies to short-term rental income
• Business Registration: CRS number required for all business operations
• Property Classification: Short-term rental activity may trigger reassessment from residential to non-residential tax classification

Tax Implications:

• Property Tax Changes: Operating as a short-term rental can change property classification from residential to non-residential, affecting property tax rates
• Gross Receipts Tax: State tax on rental income
• Lodgers Tax: Local occupancy tax where applicable
• Appeal Rights: Property owners can appeal property tax classification changes within 30 days of notice

Contact Information

Santa Fe County Assessor's Office

• Address: 100 Catron St., P.O. Box 126, Santa Fe, NM 87504-0126
• Phone: (Contact through main county office)
• Email: Information available through county website
• Website: www.santafecountynm.gov/assessor

NM Taxation and Revenue Department

• Phone: 505-827-0700
• Website: Online business registration available

Santa Fe County Land Use Department

• Responsibility: Fire safety inspections and permit enforcement
• Contact: Through Santa Fe County main office

Educational Outreach Meetings:

The Assessor's Office hosts periodic educational meetings at various locations including:

• Santa Fe County Fairgrounds Building (3229 Rodeo Road, Santa Fe, NM)
• Pojoaque Satellite Office (17839 US-84, Pojoaque, NM)
• Eldorado Max Coll Corridor Center (16 Avenida Torreon, Eldorado, NM)
• Santa Fe County Chambers (102 Grant Avenue, Santa Fe, NM)

Enforcement and Compliance Notes

Active Monitoring:

• The Assessor's Office actively identifies short-term rental properties through various sources
• Property owners must report changes to rental status by February 29th of each year
• Non-compliance can result in automatic reclassification to non-residential tax status

Penalties:

• Operating without proper permits and licenses
• Failure to meet inspection requirements
• Non-payment of applicable taxes

Appeal Process:

Property owners can challenge valuations by filing either a protest or complaint for refund pursuant to NMSA (1978), § 7-38-21, § 7-38-24 (protest), and § 7-38-39 (complaint for refund).

Links to Source Pages

1. Santa Fe County Assessor STR Information: www.santafecountynm.gov/uploads/documents/2023_STR_Letter_and_Questionnaire.pdf
2. Santa Fe New Mexican STR Article: www.santafenewmexican.com/news/business/city-officials-push-to-revisit-short-term-rental-regulations/article_115d173a-1c94-5444-ba30-5c6a91129940.html
3. Santa Fe County Website: www.santafecountynm.gov/assessor

Investment Recommendation: Given the active regulatory environment and ongoing enforcement efforts, potential investors in the Rodeo area should engage with local authorities early in the process and maintain strict compliance with all applicable regulations to avoid penalties and ensure sustainable operations.