Santa Fe Voters to Decide on Proposed Mansion Tax to Fund Affordable Housing Initiatives

Santa Fe's proposed 3% tax on property sales of $1 million or more could generate around $6 million annually for local housing projects, but critics argue it could harm the local economy and heighten social tensions.

The proposed 3% mansion tax in Santa Fe would apply to residential property sales of $1 million or more, exempting the first $1 million in value, which could generate roughly $6 million annually for local housing initiatives.
This tax, framed as a lifeline for those struggling to afford local housing costs, has garnered support from local businesses, trade unions, school board members, former mayors and Democratic U.S. Senator Martin Heinrich.
Opposed by the Santa Fe Association of Realtors who believe it oversteps the city's authority and could negatively impact home sales and the local economy, wrapping up the city in a preemptive lawsuit.
This proposal follows a trend of similar 'mansion taxes' implemented or considered in other cities, such as Los Angeles and Chicago, to address housing affordability and homelessness.
Santa Fe's housing market has seen a significant increase in property prices, with the city's median home price almost doubling since 2017 to about $600,000, highlighting the growing housing affordability crisis.