Commentary: Today, Governor Susana Martinez signed legislation allowing local communities to use lodger’s tax revenue to bring passenger air service to their areas, particularly those that are underserved. The Governor’s announcement comes as American Airlines begins regular passenger service from Roswell’s International Air Center (ROW) to Phoenix’s Sky Harbor International Airport (PHX), which is a major hub for U.S. carriers.
House Bill 192, sponsored by Representatives Bob Wooley and Candy Spence Ezzell (both R-Roswell), allows communities to use income from lodger’s tax to meet minimum revenue guarantees for securing passenger air service to and from the county or municipality. Lodger’s tax is levied by counties and municipalities for occupancy of motel and hotel rooms and other lodgings in their jurisdictions. This tax is often used by communities to promote tourism and economic development, or provide various other local services.
Roswell and other communities in New Mexico are seeking to grow and expand air service to and from more western hubs like Phoenix, Denver, and others. This legislation will help more communities, such as Hobbs, Santa Fe, Farmington, and others pursue this goal. The New Mexico Department of Transportation also notes this will help make these and other communities less dependent on federal programs and third parties.