 Home Ownership is the American Dream.
Home ownership builds vibrant, economically diverse, low crime communities.
Home Excise Taxes keep this dream from coming true…
Local governments in New Mexico are considering proposals to levy home excise taxes on residential property. For example, for every $100,000 of a property subject to the real estate excise tax, the local government could assess $1,000 in local real estate excise taxes. Only 12 states in the nation allow local jurisdictions to tax real estate transfers.
Real estate taxes are just another tax on New Mexico homeowners that will penalize them for buying and selling their home. Real estate taxes are dream breakers for homeowners’ children and grandchildren who will be the ones most hurt by this tax increase as they unable to find affordable homes.
By increasing closing costs on home purchases, home excise taxes make it difficult for many families to quality for home financing.
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Home Excise Taxes Mean More Money is Needed at Closing
| Home Price |
Home Excise Tax Rate |
Additional Closing Cost |
| $150,000 |
1.0% |
$1,500 |
| $250,000 |
1.0% |
$2,500 |
| $350,000 |
1.5% |
$5,250 |
| $550,000 |
2.0% |
$11,000 |
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A Theft of Equity
For 80% of American households, the home
represents their principal investment.
If paid by the seller, home excise taxes
represent a theft of precious equity held in
the home. Deducting home excise taxes
from the value in your home at the time of
sale means you will have less money to move,
to put down on a new home, or to spend on
other important obligations.
Thousands spent on home excise taxes
will mean less for college tuition, home
improvements, or retirement. As many
Americans retire, they sell their homes to
relocate or to help pay for medical expenses
incurred with age. Home excise taxes
have a tremendous impact on the amount
available after closing.
Legislation to Stop the Home Excise Tax Introduced
Senator John Grubesic has introduced legislation to protect New Mexico homeowners’ investment in their homes.
Senate Bill
160 will prevent local governments from levying a new real estate excise tax (a sales tax collected on the sale of every home). Without the passage of this legislation, an excise tax could be imposed on every sale of real estate in many cities across New Mexico.
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