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

YES — Short-term rentals (STRs) are permitted in both the Town of Taos and unincorporated areas of Taos County, but they are subject to strict regulations and permit requirements. The Town of Taos currently caps permits at 120, while Taos County has implemented a cap of 400 permits under their newly adopted Ordinance 2024-4, which took effect October 19, 2024.

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

For Town of Taos (City-Level)

1. Verify Zoning Eligibility: Confirm your property is in an approved zoning district
2. Complete Required Inspections: Ensure all safety requirements are met
3. Apply Online: Use the HostCompliance portal for permit applications
4. Pay Required Fees: Complete all associated permit and registration costs
5. Register for Taxes: Set up lodger's tax and gross receipts tax accounts
6. Maintain Compliance: Renew annually and adhere to ongoing requirements

For Taos County (Unincorporated Areas)

1. Review Eligibility Requirements: Determine if applying as owner-occupied or non-owner-occupied
2. Complete Appropriate Checklist: Follow the specific submission requirements for your property type
3. Gather All Required Documents: Prepare comprehensive application packet
4. Submit Application: Email to str.application@taoscountynm.gov or deliver in person
5. Await Review Process: Applications accepted starting October 21, 2024

Required Documents, Permits, Licenses, and Guidelines

Town of Taos Requirements

Permits and Licensing:

• Short-Term Rental Permit (renewed annually)
• Business Registration
• Online application through HostCompliance portal

Safety Requirements:

• Operable smoke detectors
• Carbon monoxide detectors
• Fire extinguisher
• Rental packet with host contact information and local responsible party details
• Safety information and Town rules/restrictions documentation

Tax Registration:

• Lodger's Tax registration (5% on reservations under 30 nights)
• Gross Receipts Tax registration and compliance

Taos County Requirements

Core Applications:

• Short-Term Rental Permit Application
• Zoning Clearance Application
• Rural Addressing Application (if needed)
• Fire Department Requirements for Residential Occupancy compliance

Business Licensing:

• New Business Registration Application
• Lodging Establishment Application

Affidavits and Compliance Documents:

• STR Owner Permission Statement
• Affidavit of Compliance for Owner-Occupied properties
• Affidavit of Compliance for Non-Owner Occupied properties

Specific Checklists (Updated Regularly):

• Owner-Occupied Submittal Checklist
• Non-Owner Occupied Submittal Checklist (Updated 05/05/25)

Specific Regulations

Town of Taos Zoning Restrictions

Prohibited Areas:

• Historic District(s)
• Historic and Hotel Overlay Zones
• Central Business District (CBD)

Permitted Zoning Districts:

• RA-20, RA-10, RA-6, RA
• R-1, R-2, R-3, R-4, R-6, R-14
• C-1 and C-2
• Note: Some districts require conditional use permits

Operational Requirements:

• All STR permits expire September 30th annually
• Renewal deadline: November 30th
• Applications processed first-come, first-served
• Complete inspections required before application acceptance

Taos County Regulations (Ordinance 2024-4)

Permit Caps and Eligibility:

• 400 total permit cap for unincorporated areas
• Effective date: October 19, 2024
• Application acceptance: Beginning October 21, 2024
• Separate provisions for owner-occupied vs. non-owner-occupied units

Existing STR Status:

• Currently 700-800 STRs operating during peak tourist periods
• 650-700 estimated to be eligible under new regulations
• Gradual reduction toward 400 permit cap as existing permits expire

Compliance and Monitoring:

• Regular inspections and compliance verification required
• Complaint reporting system in place
• Violation enforcement through planning department

Tax Obligations

Town of Taos:

• 5.0% Lodger's Tax on reservations under 30 nights
• Gross Receipts Tax on business operations
• Individual host responsibility for tax collection and remittance

State-Level Considerations:

• New Mexico gross receipts tax applies to business operations
• Separate state tax obligations may apply depending on business structure

Contact Information

Town of Taos

Primary Contact:

• Dinah Gonzales, Senior Planner
• Email: dgonzales@taosgov.com
• Phone: (575) 751-2034

General Information:

• Town of Taos: (575) 751-2000
• Address: 400 Camino De La Placita, Taos, NM 87571

Tax Questions:

• Customer Service: (575) 751-2019

Taos County

Application and General Inquiries:

• Phone: (575) 737-6440
• Email: str.application@taoscountynm.gov

Violation Reporting:

• Phone: (575) 741-2713
• Online Portal: Complaint Submission Link

County Offices:

• Taos County Planning Department
• Address: 105 Albright Street, Suite H, Taos, NM 87571
• Main Phone: (575) 737-6300

Source Links

Official Government Sources

1. Town of Taos Short-Term Rentals
2. Short-Term Rental Ordinance 22-12 (PDF)
3. Apply for STR Permit Online
4. Taos County Short-Term Rental Ordinance
5. 2024-4 Short Term Rental Ordinance
6. Taos County FAQ's

Application Forms and Checklists

7. Owner-Occupied Checklist (Updated 10/18)
8. Non-Owner Occupied Submittal Checklist (Updated 05/05/25)
9. Rural Addressing Application
10. Fire Department Requirements for Residential Occupancy
11. Application for New Business Registration
12. Lodging Establishment Application
13. STR Owner Permission Statement
14. Affidavit of Compliance for Owner Occupied
15. Affidavit of Compliance for Non-Owner Occupied
16. Short Term Rental Permit Application

News and Context Sources

17. Taos County adopts short-term rental ordinance - Taos News
18. Taos County Short-Term Rental Ordinance - ECAR

Additional Reference Documents

19. Town Code of Ordinances
20. Gross Receipts Tax Information
21. Town Maps
22. Taos County Fee Schedule (Resolution 2024-39)

Important Note for Investors: The regulatory environment for STRs in Taos is actively evolving. The county's new ordinance represents a significant change from previous standards, and both jurisdictions regularly update their requirements. Investors should verify current regulations and requirements before making property acquisition or business operation decisions. The capped permit systems in both jurisdictions create artificial scarcity, making early application and compliance particularly critical for new operators.