County assessor files complaint against treasurer over short-term rentals

BERNALILLO COUNTY, N.M. — The Bernalillo County Assessor filed an ethics complaint against the treasurer over short-term rentals and allegedly costing the county nearly $2 million.

Assessor Damian Lara accused Treasurer Tim Eichenberg of setting up “NM Property Tax,” a business hired by the owners of at least seven residential properties, to help lower their taxes and represent them before the county’s valuation protest board – as they faced higher taxes for reclassifying their properties as short-term rentals.

While the board sided with the reclassification, Lara accused Eichenberg of ignoring the decision and costing the county “nearly $1.8 million.”

Lara filed a letter with the State Ethics Commission regarding these claims. He’s asking them to investigate Eichenberg’s alleged violations of state law regarding government conduct.

“Lowering the tax liability for these businesses means that the average homeowner has to pick up that cost,” Lara said, “and that’s unfair to all homeowners who have played by the rules.

“The law is clear on this issue: If you operate as a business, you are classified as a business.”

In April, Lara’s office developed a first-of-its-kind policy reclassifying short-term rentals. The policy will classify properties that are rented for fewer than 29 nights-in-a-row as commercial properties.

This new policy affects houses, condos, and apartments but doesn’t include leased apartments or hotels.

In 2023, there were approximately 4,000 properties considered short term rentals. With this new policy, 1,000 are considered short term rentals and the remaining 3,000 are now available as long-term housing.

MORE: Bernalillo County reclassifies short-term rentals