Lodgers' Tax Proposal Application

A municipality may impose by Ordinance an Occupancy Tax for revenues on lodging within the Municipality. The City of Grants has exercised its Occupancy Tax privileges by imposing an Occupancy Tax of “Lodgers’ Tax,” as it is commonly known, has set forth definitions, provided for exemptions, established civil and criminal penalties, provided for audits, and established a Lodgers’ Tax Advisory Board (also known as Lodgers’ Tax Board) and administrative procedures. Every vendor who is furnishing any lodgings (including RV Parks & Short-Term Rentals) within a municipality is exercising a taxable privilege. The occupancy tax shall not exceed five percent (5%).

Proceeds from this tax shall be used specifically, as set forth by State Law and local Ordinance. Funds are made available to organizations that qualify for a Grant under the Lodgers’ Tax Program. Those who wish to apply for a Grant must submit a Proposal to be considered by the Board. Funding approvals are based on criteria established by State Law, the City of Grants Ordinance, and these procedures, therefore, funds can be used only to advertise, publicize, and promote the City and tourist-related attractions, facilities, and events. Proposals will be submitted to the Board for their review and recommendations. All Board-approved grant awards then are recommended to the City Council for approval.

1. Grant Request Prerequisites
   • Eligibility: All organizations existing within the surrounding area of the City of Grants are entitled to seek grants under the Lodgers’ Tax Program.
   • Proposals should be submitted to the City of Grants Lodgers’ Tax Board, c/o City Clerk via the electronic form (preferred method), by email to fsalas@grantsnm.gov or in person at 600 W. Santa Fe Ave., Grants, NM, by March 17, 2025.
2. Funding Requirements
   • Grants will be awarded based upon availability of Lodgers’ Tax Funds and on individual approval of eligible requests.
   • Priority will be given to those grant applications that meet the grant priorities listed below:
     1. Eligibility (based upon definitions as stated below)
     2. Promotions that encourage overnight stay in Grants
     3. Advertising that falls within allowable categories
     4. Sustained long term draw to the City of Grants
     5. Need for funding assistance to meet program objective
     6. Those that have followed the requirements of the prior year proposals

1. Tourist: A person(s) who travels a distance in excess of 50 miles for the purpose of business, pleasure, culture, recreation or vacation, who will generate Lodgers’ Tax dollars in Grants, New Mexico.
2. Promotions: Events that are planned for, promoted to, and attended by tourists and encourage those who come to the City of Grants to extend their stay.
3. Advertising: to publicize and promote through media, distribution of promotional materials including, but not limited to, brochures, videos, billboards, insertion ads, media packets and internet. (No items to be for resale purposes)
   1. Eligible Cost: Including, but not limited to, the cost of ads, painting, printing, distribution, registration and booth rental fees, postage, envelopes, mailing and production costs.
   2. Ineligible Costs: including but not limited to, commissions, taxes, and sale items, etc.
4. Coverage Area: Outside a fifty (50) mile radius of Grants, New Mexico.