On Stands Now
October 2022

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5% Lodging Tax Moving Forward

The proposed Questa lodging tax is being received with support from the hospitality community, who understand its importance in generating revenue to attract more visitors to the area. The initiative is now in the hands of the Questa Village Council for the next step.


Earlier in the year, then-Questa Mayor Mark Gallegos and Council members expressed interest in exploring a 5% occupancy tax for lodging properties within town limits. The Questa Economic Development Fund was asked to compile information and a proposal for consideration. After the presentation and follow-up discussions at two separate Council meetings, the newly elected Mayor, John Ortega and Council expressed support for the initiative, believing it was appropriate to introduce it to the lodging properties.


Lynn Skall, Director, Questa Economic Development Fund, visited Questa motels and RV parks and talked with proprietors about the proposed lodging tax. “The overall response from the lodging community was supportive. They understand that it’s a pass-through tax assessed on short term stays (30 days or less) within town limits, paid by lodging guests to the property, then remitted to the Village,” explained Skall, “The funds would be used specifically to promote Questa and to fund tourism events and activities, which ultimately attracts additional overnight guests to our lodging facilities.”


A community forum on the lodging tax was held on April 13 at Rael’s Market as part of the monthly Questa Business Entrepreneurial Networking Meeting. Bobby Ortega, owner of Sierra Hermosa RV Park, attended; he said he was previously against implementing a lodging tax because it was introduced at the same time as a water fee increase that specifically targeted RV parks. “I’m not opposed to the lodging tax, tourism is important,” said Ortega.


As for the next steps, a public hearing will be scheduled on the agenda for an upcoming Village Council meeting. The community will have the opportunity to express their views about the lodging tax before a resolution is made to implement it.


To learn more about the lodging tax and to confirm the date of the public hearing, call the Questa Village Office at (575) 586-0694.