Santa Fe voters approve tax on mansions as housing prices soar
Voters have approved a tax on mansions to pay for affordable housing initiatives in the state capital city of Santa Fe
SANTA FE, N.M. — Voters have approved a tax on mansions to pay for affordable housing initiatives in New Mexico's capital city of Santa Fe.
Uncertified election results on Wednesday show that nearly three-fourths of ballots were cast in favor of the new tax on home sales of over $1 million, in a city prized for its high-desert vistas, vibrant arts scene and stucco architecture.
The ballot measure was pitched as a lifeline to teachers, service-sector workers, single parents and youth professionals who can't afford local mortgages or struggle to pay rent amid a national housing shortage and the arrival in Santa Fe of high-income digital nomads.
Santa Fe resident and state Rep. Andrea Romero said the tax galvanized voters and will shore up spending for local affordable housing in perpetuity.
“It's just exactly in the nexus of what matters,” said Romero, a Democrat who led a fundraising and educational effort in support of the tax. “Truly, we're in a crisis.”
Tuesday's vote signals newfound public support for so-called mansion taxes to fund affordable housing and stave off homelessness.
Voters in Los Angeles last year approved a tiered-rate tax on residential and commercial real estate sales of $5 million or more to address housing shortages, while Chicago may ask voters next year whether to raise real estate transfer taxes, starting with sales over $1 million, to fight homelessness.
The city of Santa Fe estimates that the tax would generate about $6 million annually for its affordable housing trust fund, which underwrites price-restricted housing, down-payment assistance for low-income homebuyers and
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