Finance Department

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

What is the High-End Excise Tax?

The High-End Excise Tax for Affordable Housing Ordinance (Chapter 18.18) is in effect as of Monday, October 27, 2025. Santa Fe voters overwhelmingly supported this ballot measure in 2023 (73%), but a district court enjoined the ordinance before it went into effect. On Monday, October 27, 2025, the Court of Appeals ruled in the City’s favor and dissolved the injunction, resulting in the tax applying on or after that date to residential purchase transactions exceeding $1 million dollars. Purchasers of residential property pay a 3% tax on the sale amount over $1,000,000. All the funds generated 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)

 

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