Agreement with Airbnb aimed at ensuring lodgers tax collection

• Action had been postponed from the council’s Sept. 11 regular meeting to allow more coordination with the Ruidoso/Lincoln County Board of Realtors and the village’s Lodgers Tax Committee

Embarking on a new avenue for collection of lodgers tax owed on nightly rentals, the Ruidoso Village Council approved a voluntary collection agreement with Airbnb, one of the largest online international vacation rentals companies.

Action had been postponed from the council’s Sept. 11 regular meeting to allow more coordination with the Ruidoso/Lincoln County Board of Realtors and the village’s Lodgers Tax Committee. The agreement between the lodgers tax committee and Airbnb specifies that Airbnb will provide an internet-based platform through which third-parties offering accommodations and third parties booking those accommodations can communicate, negotiate and consummate a direct booking transaction for accommodations to which Airbnb is not a party.

Village Tourism Director Justin Huffmon said at the meeting last week that he and members of the committee are confident the arrangement will drive more money to village coffers and “we will see more lodgers tax,” which is collected on short-term rentals. More lodgers tax means more money to promote tourism for the village and by extension, more money for the general fund through gross receipts taxes.

“We think all around this will tremendously help us,” he told councilors.

Councilor Tim Coughlin offered the motion to approve, which passed unanimously.

“I was no vote last month,” Coughlin said. “I thought we should have just pushed it through, but these changes are minor and I appreciate you guys working with the Board of Realtors and Airbnb. These are sensible and fair to everybody. I think it is good.”

 Some of the changes inserted from the last meeting that were advocated by lodgers tax committee members and Realtor included reducing the period for auditing collected tax from 48 months to 36 months. Councilor Rafael “Rifle” Salas said he would prefer that the village’s short-term rental ordinance and the agreement cite the same period. The ordinance currently requires auditing every 24 months. That period should be increased to be consistent, he said.

The agreement was struck to “facilitate the reporting, collection and remittance of applicable (village) lodgers tax imposed under (code cited) on behalf of hosts for booking transactions completed by hosts and guests on the platform for accommodations located in the village of Ruidoso.”

Under the agreement, Airbnb agreed to contractually assume the duties of a lodgers tax collector as described in the code solely for the collection and remittance of the tax, with no other duties triggered.

Over the last few years, village officials have tightened lodgers tax collection by requiring owners to register nightly rentals and to collect the tax, if not represented by a property manager, who otherwise would be responsible to collect and remit as part of the rental price. The new agreement should reveal many homeowners who are using properties for nightly rentals, but have not registered with the village and for which lodgers tax is not being collected.