Santa Fe Approves Mansion Tax on Home Sales Over $1 Million to Fund Affordable Housing Initiatives

Nearly three-fourths of votes cast in favor of the "mansion tax" which is expected to generate about $6 million annually for Santa Fe's affordable housing fund amid concerns over local affordability.

In a landslide victory, Santa Fe voters have approved a 3% 'mansion tax' on homes sold for over $1 million, with 73% of votes in favor. It is expected to generate about $6 million in revenue annually.
The mansion tax is aimed at funding affordable housing initiatives, supporting price-restricted housing, rental assistance, and providing down-payment assistance for low-income homebuyers. This is seen as a lifeline for teachers, service workers, single parents, and young professionals struggling with housing costs.
The tax only applies to the amount over the $1 million threshold. For example, on a $1.2 million home, the tax would apply only to the $200,000 exceeding the million-dollar mark.
In 2022, more than 400 single-family homes were sold for over $1 million in Santa Fe, indicating a potential substantial revenue from the new tax for the city's affordable housing trust fund.
The Santa Fe Association of Realtors has filed a legal case in an attempt to block the mansion tax implementation, citing that Santa Fe city may have went beyond its jurisdiction under state law.