Santa Fe considers tax on mansions as housing prices soar

" Voters are deciding whether to tax mansions to pay for affordable housing initiatives in a state capital city prized for its desert-mountain vistas, vibrant arts scene and stucco architecture rooted in Native American and Spanish-colonial tradition.

If approved, the measure would add a 3% tax on residential property sales of $1 million or more — with no tax on the first $1 million in value.

On a $1.2 million home sale, for example, the new tax would apply to $200,000 in value. The buyer would pay $6,000 to the city's affordable housing trust fund.

The city estimates that the tax would generate about $6 million annually for the trust, which underwrites price-restricted housing, down-payment assistance for low-income homebuyers and rental assistance to stave off financial hardship and evictions.