Finance Department

If you have questions or feedback on the administrative rule that the draft materials do not address, please email excisetax@santafenm.gov

Rulemaking for the High-End Excise Tax for Affordable Housing 

The City invites community members to provide feedback for the proposed Excise Tax Administrative Rule[FH1]. The administrative rule provides the instructions to comply with the High-End Excise Tax for Affordable Housing Ordinance. The ordinance will go into effect on May 28, 2024.

Please see the documents section below for the draft administrative rule and the associated forms. If you would like to provide feedback on the proposed administrative rule, please submit your comments using any of the following methods:

  • Electronically using the form below by April 23 at 5 pm.
  • Attending an in-person community meeting at 11:30 am on Monday, April 22, at the Main Library and providing oral comment
  • Attending a virtual community meeting on Monday, April 22, on Zoom at 2 pm and providing oral comments. Click here to join the Zoom meeting. 

 

What is the High-End Excise Tax?

When the High-End Excise Tax for Affordable Housing (Chapter 18.18) takes effect after May 28, 2024, anyone purchasing a residential property will need to pay a 3% tax on the sale amount over $1,000,000. All the funds from this excise tax will go into the Affordable Housing Trust Fund.

 

Where does the tax go?

The City of Santa Fe created the Affordable Housing Trust Fund (AHTF) by ordinance in 2007. This ordinance follows state law, the New Mexico Housing Act, to support various affordable housing needs. The City releases an annual funding opportunity to support projects such as:

  • Homeownership assistance
  • Affordable Housing Development and Construction
  • Rental Assistance for low-income renters
  • Acquisition, Conversion, Rehabilitation, or other Preservation costs for existing structures

The City of Santa Fe passed an ordinance (18-18) in the Fall of 2023 to create a dedicated funding stream using this excise tax. Please see the Office of Affordable Housing’s web page for more information about the AHTF or view the ordinance (AHTF City Code 26.3)

 

Documents

 

The City invites community members to provide feedback for the Excise Tax Administrative Rule, which will be available in March. The ordinance will go into effect after May 28, 2024.

 

Please provide your feedback for the proposed rule. If possible, include the section heading within the draft rule.

(Optional)
Please provide your email address if you would like to receive updates about the proposed rule.