Under the authority of City Code 3-2C, the city has established a lodgers' tax paid by persons using commercial lodging accommodations.

In the City of Gallup, the Lodgers Tax is executed the Tourism and Marketing department and through awarding of Grant Funds to qualified applicants. The tax is administered in compliance with the New Mexico Department of Finance Administration rules, but for the convenience of Grant Applicants, a handbook was created to assist with interpreting the NMDFA's rules for the administration of the Tax. That information can be found below.

Lodging operators are required to report lodging receipts by the twenty-fifth day of each month on city-approved forms for the preceding calendar month, and to remit payment of the amounts due. The tax rate is 5% on the gross taxable amount paid for lodging. See the Lodger's Tax Ordinance for information on exemptions.