New Mexico News
| SF's Proposed Real Estate Transfer Tax Clears Hurdle |
| Posted by () on Jun 10 2008 at 3:39 PM |
SANTA FE — A plan to levy a tax on high-end Santa Fe real estate transactions moved forward last week, despite concerns over a hasty process and an unclear destination for generated revenue.
Members of the City Council's Finance Committee approved the controversial proposal with several minor amendments, meaning the plan is one step closer to being voted on by Santa Feans on Aug. 19.
But Councilor Matthew Ortiz, the committee's chairman, expressed distaste for a perceived anxiousness to address the issue before state lawmakers convene next January.
“I don't believe that this should be done in a quick, let's-beat-the-rush approach,” Ortiz said.
The current plan, which would levy a 1 percent tax on all portions of a real estate transaction that exceed the $650,000 mark, is the latest version of an ongoing municipal flirtation with the idea of high-end real estate sales helping to pay for affordable housing options.
If approved by voters, the so-called Workforce Housing Initiative would generate about $1.6 million per year.
More than 30 states have some form of real estate transfer tax in place, but New Mexico isn't one of them. Though Santa Fe has led the way on such controversial issues as a new mandatory minimum wage law and a ban on hand-held cell phones for drivers, Ortiz pointed out that such pioneering often provokes resistance and, in many cases, lawsuits.
“When we do something that's never been before, it comes with a cost,” he said.
City figures show that 44 percent of Santa Fe's work force commutes from outside the city due in part to astronomical housing costs.
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