City to hold meetings Monday on upcoming excise tax
Apr. 19—The city of Santa Fe will be seeking residents' input on the upcoming excise tax on home sales over $1 million at several public meetings Monday.
The excise tax ordinance, approved in a landslide vote in the November municipal election, is scheduled to take effect May 28.
The ordinance will impose a 3% tax on the value of any home sale in Santa Fe that exceeds $1 million. All the money from the tax will go into the city's Affordable Housing Trust Fund, which provides vouchers for renters, down payment assistance for homebuyers and financial assistance for affordable housing developments. Advocates have estimated the tax could generate about $6 million a year for the fund.
The city will be holding an in-person and virtual meeting Monday for residents to provide feedback on the administrative rule for the excise tax, a draft version of which is published on the city's website.
The administrative rule provides instructions for complying with the excise tax ordinance. According to the draft rule, purchasers of qualifying property must complete a tax report and payment voucher form within 30 days of the property transfer.
The in-person meeting is scheduled for 11:30 a.m. at the downtown Main Library and the virtual meeting for 2 p.m. via Zoom. People can also submit feedback through on online form through Tuesday.
"This is our opportunity to make the rule more clear and/or better before the ordinance goes into effect," City Attorney Erin McSherry wrote in a text message.
The city would like feedback on whether the reporting form and filing and payment process are understandable and user friendly, and if there are any aspects of the rule that are unclear or confusing, along with any other concerns or suggestions, McSherry wrote.
The Santa Fe Association of Realtors, which campaigned heavily against the tax during the election, is suing the city. The complaint, which also has two individual plaintiffs, challenges the city's legal authority to impose the tax, arguing it is a tax on real estate and not, as the city states, a tax on a service.
State District Judge Bryan Biedscheid denied a motion from the city to have the case dismissed in February and asked for more information from the city. He said he would like to resolve the case via summary judgment before it is scheduled to go into effect.
As of now, no future hearings have been scheduled. McSherry said the the city is submitting its summary judgment briefs to the court this week.
