Albuquerque taxes, licenses, and permits for long term rentals

[Ethan Lozano]

I'm a new real estate investor in Albuquerque, and I’m a new member of the BiggerPockets community. So, Hello!

I self manage a couple long-term rental properties that I own, and I want to make sure that I am not accidentally avoiding any taxes, registrations, permits, or licenses that are required for the state, county, city, neighborhood, or any other local governments.

Also, I want to make sure that I am not avoiding anything in the future if/when the laws change. ABQ’s Short Term Rentals (STRs) Task force report outlines how the city might regulate STRs, and this has a potential to affect how the city regulates Long Term Rentals (LTRs).

Below is a summary of the different taxes, registrations, permits, and licenses that I've investigated, and what potentially exempts my rentals. Note: I am neither a lawyer nor a CPA, so this is not legal or financial advice. I just want to share what I’ve learned with the community, and hopefully those more knowledgeable can chime in with more information so everyone can benefit.

Taxes:

• NM Gross Receipts Tax - Gross Receipts exempts “persons having three or fewer rental units”, so I believe I’m exempt. The exemption explicitly states “leasing” rather than “licensing”; this distinction is important for lodging such as short term rentals, which are required to pay this tax even if you own three or fewer units.
• NM Compensating Tax - I believe I fall under the same exemption as the Gross Receipts tax exemption, so I think I'm exempt
• NM Wage Withholding Tax - I do not have any employees, so I think I’m exempt
• NM Worker's Compensation Tax - I do not have any employees, so I think I'm exempt
• NM Corporate Income and Franchise Tax - I do not have a corporation, so I think I'm exempt
• Bernalillo Property Tax - I need to pay this tax
• Bernalillo Business Personal Property Tax - my rentals are residential, rather than commercial, so I believe I’m exempt
• ABQ Hospitality Tax - I lease for longer than “at least 30 consecutive days”, so I think I’m exempt
• ABQ Lodger’s Tax - I lease for longer than “at least 30 consecutive days”, so I think I’m exempt
• Am I forgetting other taxes?

Registrations, Licenses, and Permits:

• IRS EIN - I formed an LLC
• NM Secretary of State (SOS) Business ID - I formed an LLC
• NM Taxation and Revenue Department (TRD) - I do not think I need to pay gross receipts, withholding, or compensating taxes, so I believe that I’m exempt from registering.
• Bernalillo Business License & Registration - I do not need to register for a TRD CRS number, and I believe that I am exempt from the various county taxes (i.e. BPP). So, I believe that I'm exempt
• ABQ Business Registration - I do not need to register for a TRD CRS number, and I believe that I'm exempt from the various city taxes (Hospitality, Lodger's, etc.). So, I believe that I'm exempt
• Am I forgetting other registrations, licenses, or permits?