Overview: Are Short-Term Rentals Allowed in Silver City, NM?

Short-term rentals are explicitly allowed in Silver City, NM. The town has established a regulatory framework specifically addressing short-term rental units (defined as offering stays of less than 30 days). Silver City has taken active steps to regulate and tax these operations, including contracting with Avenu Insights and Analytics for tax collection and identifying 94 existing short-term rentals within town limits.

The town collects both a 5% lodgers tax on gross rental receipts and an 8.2375% gross receipts tax from short-term rental operations. Registration with the Community Development Department is mandatory.

How to Start a Short-Term Rental Business in Silver City

Step 1: Register Your Business with the Town

• Location: Community Development Department, second floor of City Hall Annex at 1203 N. Hudson St.
• Contact: Maria Stacy, Planning Technician, at 575-597-7028 or mstacy@silvercitynm.gov
• Process: Register your rental property as a business. The town has identified existing short-term rentals and requires all to be properly registered.

Step 2: Establish Tax Collection and Reporting Systems

• Lodgers Tax: 5% of gross rental receipts from stays under 30 days
• Gross Receipts Tax: 8.2375% on earnings
• Reporting Deadline: Monthly reports must be filed by the 25th of each month
• Online Option: Beginning with the October 2023 billing cycle, owners can pay monthly lodgers tax online through Avenu Insights and Analytics

Step 3: Maintain Ongoing Compliance

• File monthly tax reports even if no income was earned
• Keep detailed records of all rental income
• Ensure compliance with any HOA or condominium association rules that may restrict short-term rentals

Required Documents, Permits, Licenses, and Guidelines

Business Registration

• Business License: Required through the Community Development Department
• Property Registration: Must register each short-term rental property with the town
• Contact Information: Current contact details for property owner or manager

Tax Documentation

• Monthly Lodgers Tax Report: Due by the 25th of each month
• Gross Receipts Tax Filing: Separate filing for the 8.2375% gross receipts tax
• Income Records: Detailed documentation of all rental income and expenses

Additional Considerations

• HOA/Condo Rules: Review any homeowner association or condominium association restrictions
• Insurance: Ensure adequate property and liability insurance coverage
• Property Standards: Maintain properties to town health and safety standards

Specific Regulations for Short-Term Rentals

Town of Silver City Regulations

Definition: Short-term rentals are defined as accommodations offering stays of less than 30 days.

Tax Obligations:

• Lodgers Tax: 5% of gross rental receipts
• Gross Receipts Tax: 8.2375% on earnings
• Reporting Requirements: Monthly tax reports due by the 25th of each month

Registration Requirements:

• All short-term rental properties must be registered with the Community Development Department
• The town has identified and contacted 94 short-term rentals through contractor Avenu Insights and Analytics

Recent Regulatory Changes:

• Ordinance No. 1324, passed September 12, 2023, amended the lodgers tax ordinance to bring short-term rental units into conformity with town code and state law
• The amendment removed a previous exemption that allowed some units to avoid lodgers tax

Grant County Regulations

No county-specific short-term rental regulations were identified in the provided sources. Operations are primarily governed by town regulations.

New Mexico State Regulations

• Gross Receipts Tax: State-imposed 8.2375% gross receipts tax applies to short-term rental income
• Lodgers Tax Authority: The New Mexico Lodgers' Tax was originally enacted in 1969, giving towns and counties within the state the ability to create, impose and collect an occupancy tax

Tax Collection and Use

Lodgers Tax Collection:

• The town collected more than $364,000 in lodgers tax receipts in the fiscal year ending June 30
• At least 50% of lodgers taxes collected must be used to promote tourism and related activities
• Remaining funds may be used to collect and administer the tax, fund tourism-related facilities, transportation, and certain capital improvements

Contact Information

Primary Contact for Registration

Maria Stacy, Planning Technician

• Phone: 575-597-7028
• Email: mstacy@silvercitynm.gov
• Location: Community Development Department, second floor of City Hall Annex, 1203 N. Hudson St.

Tax Filing and Payment Support

Avenu Insights and Analytics (Tax Collection Contractor)

• Phone: 866-240-3665
• Hours: Monday through Friday, 6:30 a.m. to 3:30 p.m.
• Email: supportmuni@avenuinsights.com
• Online Filing: Available through Avenu platform for lodgers tax payments

Town Hall (Gross Receipts Tax)

• Address: 101 W. Broadway, Silver City, NM 88062
• Phone: 575-538-3731

Community Development Director

Jacqui Olea

• Referenced in town communications regarding short-term rental regulations

Source Links

1. Town Ordinance No. 1324: Silver City Lodgers Tax Amendment
2. News Article: Silver Launches New Lodgers Tax Process
3. Town Rules & Regulations: Silver City Official Website
4. Market Analysis: AirROI Silver City Market Report
5. Property Management Information: Summer Vacation Rental Management

Important Notes for Investors

• Silver City has actively identified and regulated existing short-term rentals, indicating strong enforcement
• The town has established online tax payment systems for convenience
• Tax revenue is specifically earmarked for tourism promotion, benefiting the broader STR market
• The market shows low regulatory burden compared to larger cities, making it attractive for new investors
• The 2023 ordinance amendment indicates ongoing regulatory development, suggesting the town is actively managing the STR market

This regulatory environment provides clear guidelines for legal operation while maintaining relatively low barriers to entry for new short-term rental businesses in Silver City.