CARLSBAD, N.M. – The City of Carlsbad has repealed and replaced its Lodgers’ Tax ordinance in accordance with House Bill 117, Lodgers’ Tax Exemptions, which was signed into law on March 9, 2020.   The updated ordinance went into effect on July 1, 2020, following City Council’s June 9 approval.

Lodgers’ tax is a tax that property owners and property managers collect from renters. The new ordinance removes a previous exemption, in which Lodgers’ Tax was not charged for stays longer than 30 days. The ordinance also provides additional clarifications in terms of defining temporary lodging.

Lodgers’ Tax collected for the first 30 days of a stay will continue to be dedicated to tourist-related facilities and advertising.  Lodgers’ Tax collected for stays longer than 30 days will be applied to roads, public safety and other similar governmental services.

The ordinance will not have any impact on Carlsbad residents renting apartments, condominiums, houses, and RV spaces.

“This updated ordinance closes a previous loophole and makes the cost of providing City services more fair to the citizens of Carlsbad,” Carlsbad Mayor Dale Janway said. “Until now, our long-term residents have taken on much more than their share in terms of handling the cost to fix the wear and tear caused by a huge boom in population.”

With the funds being used for roads and other infrastructure improvements, Janway said both long-term and temporary residents will benefit. The City of Carlsbad will continue to remain transparent with the expenditure of Lodgers’ Tax and all funds.

“We’re already seeing signs that Carlsbad is ramping back up for business,” he noted. “We’re going to be well-prepared for the next boom, and we will continue building a community together that is welcoming to everyone.”

Contact: Kyle Marksteiner

(575) 887-1191, kmarksteiner@cityofcarlsbadnm.com

Photo by Jamar Penny on Unsplash