Court of Appeals dissolves injunction; Santa Fe's high-end excise tax becomes effective

The City of Santa Fe will implement its voter-approved high-end excise tax for affordable housing after the New Mexico Court of Appeals dissolved the district court injunction that had kept the measure from taking effect.

The city attorney briefed the governing body that the ordinance, codified in the city code at section 18-18, requires buyers to pay a 3% excise tax on consideration paid for residential property sales that exceed $1,000,000, with specific exceptions listed in the ordinance. "The ordinance is codified in the city's code, so anyone can look it up," the city attorney said during the briefing.

The attorney said the ordinance would have gone into effect on May 28, 2024, but the injunction delayed implementation; the Court of Appeals' action lifted that injunction and the tax went into effect immediately upon the appellate court's order. The city's finance director will post final administrative rules and updated forms on the city website this week; staff will also issue a press release and direct communications to impacted groups using contacts gathered during prior public engagement.

The attorney urged residents and affected parties to consult the ordinance text in the municipal code for complete information about exceptions, filing and payment procedures. The web page for the excise tax and implementation documents will be posted at the city finance site and promoted via a forthcoming press release.