Overview: STR Regulations & Market Status

Short-term rentals are allowed in Taos Ski Valley and the broader Taos County area, but with significant regulatory constraints. The market operates under a dual jurisdiction system where the Village of Taos Ski Valley (incorporated area) follows different rules than unincorporated Taos County areas. The Town of Taos and Taos County have implemented comprehensive permit systems with caps, while the Village of Taos Ski Valley maintains a more streamlined approach focused primarily on lodgers' tax compliance.

The regulatory landscape became notably more restrictive with Taos County's adoption of Ordinance 2024-4 in August 2024, establishing the first comprehensive county-wide STR framework with a 400-permit cap for unincorporated areas. This contrasts with the Town of Taos' established system with 120 permits and the Village of Taos Ski Valley's lodgers' tax registration system.

Starting a Short-Term Rental Business

Jurisdiction-Specific Steps

For Properties in the Village of Taos Ski Valley (Incorporated):

1. Property Assessment: Confirm the property is within Village limits
2. Lodgers' Tax Registration: Complete the Lodgers' Tax Registration form (PDF available on Village website)
3. Lodgers' Tax Setup: Set up monthly reporting system using the Lodgers Tax Monthly Report form
4. Business Registration: Contact Village Office for business license if applicable
5. Compliance Monitoring: Maintain current lodgers' tax payments and monthly reporting

For Properties in Unincorporated Taos County:

1. Eligibility Assessment: Determine if property qualifies under Ordinance 2024-4
2. Application Preparation: Review county checklists (Owner-Occupied vs. Non-Owner Occupied)
3. Zoning Clearance: Confirm zoning allows STR use or obtain conditional use permit
4. Fire Department Requirements: Complete Fire Department Requirements for Residential Occupancy
5. Business Registration: File Application for New Business Registration
6. Lodging Establishment Application: Complete Lodging Establishment Application
7. Permit Submission: Submit STR Permit Application via email or in person
8. Permit Acquisition: Await approval and permit issuance

For Properties in Town of Taos:

1. Property Assessment: Confirm location within Town limits and zoning district
2. Permit Application: Use the online system at secure.hostcompliance.com/taos-nm/permit-registration
3. Inspection Coordination: Schedule and complete Fire & Safety Inspection
4. Primary Residency Documentation: Provide proof if claiming primary residence
5. Permit Payment: Pay annual fee ($300-$400)
6. Compliance Setup: Implement safety measures and rental packet requirements

Required Documents, Permits & Licenses

Village of Taos Ski Valley

• Lodgers' Tax Registration (PDF form)
• Lodgers' Tax Monthly Report (PDF form)
• Business License (Village Office)
• Animal License (for dogs/cats, if applicable)

Taos County (Unincorporated Areas)

• Short Term Rental Permit Application
• STR Owner Permission Statement
• Affidavit of Compliance (Owner-Occupied or Non-Owner Occupied versions)
• Rural Addressing Application
• Fire Department Requirements for Residential Occupancy
• Application for New Business Registration
• Lodging Establishment Application
• Zoning Clearance (if required)

Town of Taos

• Short-Term Rental Permit (online application via secure.hostcompliance.com)
• Business License (included in STR permit)
• Fire & Safety Inspection (coordination with Fire Marshall)
• New Mexico CRS Number (Combined Reporting System)
• Primary Residency Documentation (if applicable)
• Conditional Use Permit (if required by zoning)

Specific Regulations

Village of Taos Ski Valley (Incorporated)

• Lodgers' Tax: Required registration and monthly reporting
• No Permit Cap: No specific number limitations identified
• Tax Compliance: Monthly lodgers' tax payments required
• Business Operations: Must comply with Village business licensing requirements

Taos County (Unincorporated Areas) - Ordinance 2024-4

• Permit Cap: 400 permits maximum for unincorporated areas
• Application Period: Applications accepted starting October 21, 2024
• Exemptions: Multiple categories of exemptions exist to incentivize affordable housing
• Phased Implementation: Permit cap will gradually reduce as non-conforming permits expire
• Compliance Monitoring: Active enforcement and reporting system
• Public Concerns: Phone hotline (575) 741-2713 and online complaint portal available

Town of Taos

• Permit Cap: 120 permits maximum (appears to be outdated information)
• Zoning Restrictions: STR units prohibited in Historic District, Historic/Hotel Overlay Zones, and Central Business District
• Permitted Zoning Districts: RA-20, RA-10, RA-6, RA, R-1, R-2, R-3, R-4, R-6, R-14, C-1, C-2
• Permit Timeline: Annual permits expire September 30th, renewal deadline November 30th
• Safety Requirements: Smoke detectors, CO detectors, fire extinguisher, emergency contact information
• Rental Packet: Must include host contact info, local responsible party contact, safety information, Town rules/restrictions
• Taxes: 5.0% Lodger's Tax on reservations <30 nights, Gross Receipt Tax on business operations

New Mexico State Requirements

• CRS Number: Required for all businesses (Combined Reporting System for gross receipts tax)
• Gross Receipts Tax: Varies by location (8.5% in Town of Taos)
• Short-Term Rental Definition: Periods of less than 30 days typically qualify as STR

Contact Information

Village of Taos Ski Valley

• Village Office: 575-776-8220 (ext. 3 for water/sewer)
• Address: Village of Taos Ski Valley, NM 87525
• Business Licensing: Contact Village Office directly
• Utilities: 575-776-8220 (ext. 3)

Taos County Planning Department

• Main Phone: 575-737-6300
• STR Application Email: str.application@taoscountynm.gov
• General Inquiries Phone: 575-737-6440
• Report a Concern: (575) 741-2713
• Address: 105 Albright Street, Suite H, Taos, NM 87571
• Online Complaint Portal: secure.hostcompliance.com/taos-county-nm/complaints/type

Town of Taos Planning Department

• Short-Term Rental Contact: Dinah Gonzales, Senior Planner
• Email: dgonzales@taosgov.com
• Phone: (575) 751-2034
• Town Main Phone: 575-751-2000
• Address: 400 Camino De La Placita, Taos, NM 87571
• Online Application: secure.hostcompliance.com/taos-nm/permit-registration

Fire Departments

• Town of Taos Fire Inspection: (575) 758-3386
• Village of Taos Ski Valley Fire: Contact Village Public Safety

Source Links

1. Taos Town STR Information: www.taosnm.gov/427/Short-Term-Rentals
2. Taos County STR Ordinance: www.taoscounty.org/489/Short-Term-Rental-Ordinance
3. County Ordinance Document: taoscounty.org/DocumentCenter/View/2887/2024-4-Short-Term-Rental-Ordinance
4. Village of Taos Ski Valley Residents Page: www.vtsv.org/residents/
5. Lodgers' Tax Registration Form: www.vtsv.org/wp-content/uploads/2012/03/Lodgers-Tax-Registration-form.pdf
6. Lodgers Tax Monthly Report: www.vtsv.org/wp-content/uploads/2012/03/Lodgers-tax-monthly-report.pdf
7. News Article on County Ordinance: www.taosnews.com/news/politics/taos-county-adopts-short-term-rental-ordinance/article_af026eb2-5f32-11ef-a211-a30542a7b89a.html
8. Airbnb Help for Taos: www.airbnb.com/help/article/2373
9. Taos County STR Permit Application: www.taoscounty.org/DocumentCenter/View/2954
10. Town of Taos STR Permit Application: secure.hostcompliance.com/taos-nm/permit-registration

Critical Investment Considerations

Market Dynamics: The 400-permit cap in unincorporated county areas versus the Village's lodgers' tax registration system creates a bifurcated market. Properties in the Village may offer more straightforward entry, while county properties face competitive permit allocation with exemptions favoring certain owner categories.

Compliance Complexity: Multiple jurisdictions mean different rules, forms, and compliance requirements. Property investors must clearly identify their jurisdiction and follow the appropriate regulatory pathway.

Tax Implications: All areas require tax compliance (lodgers' tax, gross receipts tax), but the mechanisms and rates vary by jurisdiction. The Town of Taos appears to have the most complex tax structure with multiple layers.

Timeline Constraints: County permits are capped and competitive, while the Village system appears more accessible. Investors should factor application timelines and permit availability into their business planning.