By Jesse Jones, The Paper. — A legal fight over a short-term rental tax has escalated into a civil war inside the Bernalillo County government — and a Democratic primary battle in the background — pitting top financial officials against each other over millions in tax revenue and allegations of ethical misconduct.
The dispute simmering between County Assessor Damian Lara and County Treasurer Tim Eichenberg boiled over into a lawsuit last month. New court filings and a complaint to the State Ethics Commission on Friday expand the fight from a mere disagreement over roles to open allegations of corruption. Lara alleges Eichenberg illegally reversed the tax classifications of more than 1,000 short-term rental properties — mostly Airbnbs — Lara had classified as commercial properties. Several owners lost a protest over the change but Eichenberg, whose family owns a property tax assessment business he once operated, agreed with those protests and changed the tax bills back to residential anyway.
In real terms, Lara’s reassessment means owners of short-term rentals must pay commercial property tax which is not covered by the 3% cap on residential properties. Those owners should have received bigger tax bills, Lara says, resulting in $1.8 million in new revenue for the County, but Eichenberg unilaterally changed the assessments and sent residential tax bills to those owners.
Eichenberg, for his part, says Lara is acting unilaterally himself by defining “short-term” rentals as commercial property when the state legislature and courts have not agreed. He pointed to 2025 House Memorial 52, which paused these changes while the state studies the issue. Lawmakers took no action after the report’s December release, leaving the issue unresolved in 2026.
Lara said Eichenberg broke the law to help his own firm, New Mexico Property Tax, which represented several owners and saved them nearly $16,000. According to Lara, the move cost the county $1.8 million and ignored rulings from the Valuation Protest Board. He said the reversal unfairly forces regular homeowners who “play by the rules” to pay more so business owners can pay less.
This battle is now heading to court, where Lara is seeking an injunction to block Eichenberg from touching the 2026 tax schedule. Lara also requested that the Ethics Commission refer the matter to the state’s Department of Justice.
The final word might come from voters. Eichenberg’s Deputy Treasurer, Linda Stover, also a former county clerk, launched a campaign for Bernalillo County Assessor. A Stover victory would give Eichenberg a close ally in the office he now challenges, which could reshape how the county taxes short-term rentals.