City of Santa Fe Announces Rulemaking for the High-End Excise Tax for Affordable Housing | City of Santa Fe

City of Santa Fe Announces Rulemaking for the High-End Excise Tax for Affordable Housing

22 Mar, 2024

SANTA FE, MARCH 22, 2024 – Santa Fe, N.M.— The City of Santa Fe is announcing its rulemaking to implement the High-End Excise Tax for Affordable Housing ordinance. The rulemaking process begins with the City publishing the proposed rule and includes opportunities for written and oral public comment on the proposal.  

In the November 2023 Regular Local Election, Santa Fe voters overwhelmingly supported a ballot measure to adopt the ordinance and implement a 3-percent excise tax on the portion of home sales over $1 million to support the Affordable Housing Trust Fund. The rulemaking will allow the community to provide feedback on the proposed rule that will implement the ordinance and specifically, the procedures and guidelines that affected parties must follow. 

Mayor Webber expressed enthusiasm for the positive impact this excise tax will have on affordable housing initiatives and said, “Affordable and workforce housing continues to be our community’s highest priority, as reflected in the overwhelming vote in favor of this excise tax. I’m excited to see us taking the next step in implementing this tax. Every step brings us closer to getting the funds we need to get the housing we need.” 

The Notice of Rulemaking, along with the draft of the rule, is available here. Members of the public can submit comments on the proposed rulemaking by using the comment form available on the same page. The deadline for written public comment on the draft rule is 5 p.m. on Tuesday, April 23, 2024.  

Members of the public can also attend one of two community meetings to learn about the rule and provide oral comments on Monday, April 22, in person at 11:30 AM at the Main Library and 2 p.m. via Zoom

After receiving and considering the written and oral public comment, the City will publish the final rule in advance of the ordinance’s effective date of May 28, 2024. The tax will apply to transactions closing on or after May 28.  

More information about the excise tax is available here. Questions can be directed to More information about the Affordable Housing Trust Fund, its distribution process, and the Community Development Commission is available on the City’s Office of Affordable Housing webpage.  

About the Affordable Housing Trust Fund 

The City’s Affordable Housing Trust Fund (AHTF) was established by ordinance in 2007, following a 2006 amendment to the New Mexico State Constitution that allowed public funds to be used to support affordable housing. The City’s AHTF program was the first of its kind in New Mexico and one of the earliest across the US. The Fund supports affordable housing activities to help residents live in Santa Fe. The New Mexico Affordable Housing Act governs the fund’s rules. The City’s Community Development Commission, a citizen advisory board, determines the annual spending priorities and provides funding recommendations for the Governing Body’s approval.