Clovis adopts lodgers tax for short‑term rentals and enacts streamlined rental rules

The Clovis City Commission on Thursday voted unanimously to adopt two ordinances that bring short‑term rentals under the city’s lodgers tax and implement a streamlined set of local regulations for those rentals.

Mayor Mike Morris, who disclosed he owns a short‑term rental, said the change closes a compliance gap and helps ensure revenue used to promote city events is captured. “If you have a short‑term rental and you’re not collecting and remitting lodgers tax, that really goes against what state law says,” he said.

City Attorney Morris told commissioners Ordinance 2257‑2026 adds short‑term rentals to the municipal definition of taxable premises and aligns local code with state statute on temporary lodging. The commission adopted that ordinance with language making the lodgers tax effective July 1 and without applying it retroactively to bookings made before that date.

The commission then considered a separate ordinance (2258‑2026) amending the Unified Development Ordinance to regulate short‑term rentals. Staff presented three draft options ranging from stringent to pared‑down. Commissioners and members of the public debated requirements including the need for 24/7 contacts, inspections without advance notice, display of evacuation plans, occupancy limits, insurance proof and whether to set a separate per‑unit permit fee or rely on an existing business registration.

Short‑term rental owners urged the commission to avoid retroactive penalties and to remove provisions allowing inspections without notice. “I’m not opposed to the lodgers tax, I just don’t want to be penalized for bookings I already have,” said one owner, who asked that existing reservations be grandfathered. Another owner said unannounced inspections would be disruptive for guests and raised privacy concerns.

After debate, the commission moved to adopt the pared‑down regulatory option with these changes: removal of the language authorizing inspections without prior notice, striking the requirement to display a posted evacuation plan, and removing the provision that would have required repeated inspection of smoke alarms. The ordinance keeps a requirement that operators obtain city business registration and a valid short‑term rental permit; the text also allows the commission to set any additional permit fee by later resolution. Commissioners agreed the effective date for the regulatory measures should be aligned with the lodgers tax timing where applicable.

City staff said they will notify booking platforms and advise owners on compliance steps. The council instructed staff to provide a corrected redline of the final ordinance text to commissioners after the meeting.

Both ordinances passed unanimously: Ordinance 2257‑2026 (lodgers tax) and Ordinance 2258‑2026 (UDO amendments) were approved, with the lodgers tax effective July 1 and not applied to bookings already made.

What happens next: staff will circulate the final ordinance language, contact major booking platforms about remittance, and prepare administrative materials for registering short‑term rental addresses. The commission left open the option to set a modest administrative fee by resolution at a later date.

Quotes: “We want to get this right and not hurt business owners,” Commissioner Jones said during debate. “A July 1 effective date gives people time to prepare.”

Ending: The commission’s action brings Clovis in line with other New Mexico municipalities that have extended lodgers tax rules to short‑term rentals while adopting a lighter regulatory structure intended to reduce the administrative burden for small operators.