SANTA FE, N.M. (KRQE) – It was stuck in legal limbo for years, but now Santa Fe's tax on high-priced homes is in effect. The city said the ordinance implementing a 3% excise tax on homes sold for a million dollars or more went into effect on Monday.

Voters approved the tax in 2023, but two residents and the Santa Fe Association of Realtors filed a lawsuit to block it. But this week, the New Mexico Court of Appeals ruled that those plaintiffs did not have standing, allowing the tax to go into effect. The city said transactions closing on or after October 27 are now subject to the tax.

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