A really bad idea

At a time when the economy is struggling, Route 66 motels in New Mexico sure don’t need this.

According to the New Mexico Business Weekly, state Sens. George K. Munoz, D-Cibola and McKinley, and John M. Sapien, D-Sandoval, have introduced a bill to impose a 10 percent lodging tax across the board on all lodging in the state, including RV parks.

Naturally, the state’s lodging and innkeepers associations are opposing it:

The groups claim that if the bill became law, it would place New Mexico at the top of the 50 states relative to local taxes paid. In Albuquerque, those staying in lodging properties would pay 16 percent in lodgers taxes, plus 6.75 percent in gross receipts taxes. In Santa Fe, consumers would pay 17 percent in lodgers taxes and 7.9 percent in gross receipts and other taxes.

The trade associations argue that there is a misconceptions that lodgers taxes are paid by those living outside New Mexico, but they said more than a third of lodgers taxes are paid by New Mexico residents traveling within the state (my emphasis).

So the notion that a lodging tax will affect only out-of-state travelers doesn’t wash with the facts.

You also have a fair number of poor people who use motels as long-term lodging. So it would hit them hard economically, too.

I’ve been unable to find any information about the bill’s prospects in the Legislature. But it would be best for it to die a quick death. This is simply bad policy.

2 thoughts on “A really bad idea

  1. So, an industry which depends on tourism? Aaaaaand the state is gonna gouge those tourist for more money?
    And they think tourists will just go along with it?

    Hmmmmmm.

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