Ruidoso emphasizes compliance for nightly rentals

Jan. 16--A new software program will help the Ruidoso planning department, individual property owners and property managers track nightly rentals in Ruidoso and the amount of lodger's tax they should be paying to the village.

At the village council meeting last week, Community Development Director Tim Dodge said all addresses are being check for the Host Compliance project to ensure they are correct before staff begins sending out notices to short term rental owners, who are not compliant.

He presented an improvement plan developed specifically for short term rentals and said he will use it to identify issues, solutions and how to accomplish goals, such as develop and implement a process to ensure timely issuance of permits; finding a method to ensure information is available to the police department about nightly rentals; and to increase collections of the lodger's tax.

"I plan revisions to the ordinance and I am asking permission of council to publish (those) in February and consider a March public hearing (for possible adoption)," Dodge said. "I have met with property managers, met with fire and police chiefs and talked about some of the changes I will be proposing to the ordinance. The property managers seemed to like what I was suggesting. This software has an element where we will be able to reconcile the property listed, what it rented for and a component for a collection and remittance report. So, we will know is a property is being rented out, how much (tax) is owed, even back to Dec. 1, the target date for lodger's tax agreed on in a resolution adopted by this body.

"We've already started collecting yesterday. One firm sent in 16 different reports (that added up to) about $16,000 (in lodger's tax) and five of those reported on weren't even listed for short-term renting. So, we are following up and making sure we send them an application and get compliance."

About 500 properties currently are registered as nightly rentals, Dodge said Wednesday, but he anticipates that number to increase with better compliance tracking. "We have begun seeing more individuals reporting on the lodger's tax side," he said.

Once the village has a property registered, the owner will be issued a number and will be able to go on line and prior to 25th of every month, be able to enter the number of rental days. The site will calculate the gross and the amount of the 5 percent tax, he said. The owners will be able to check date accuracy and back out a date, if a property was not rented.

"Instead of being the honor system, which it currently is, there will be some accountability to the system," Dodge said. The process will be significantly less labor intensive, he said.

He can arrange a webinar demonstration of the system and plans to do some training with property and individual owners, he said.

"I think it will bring a return on our investment," he said. If not, he will come back with recommendations about going in a new direction. The ordinance encourages people to do business with property managers.

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