OPPOSE a Transfer Tax on the Sale of Property
A bill has been introduced in the 2022 New Mexico Legislature that would, if it passes, enact a Transfer Tax on the sale of real property valued at over $500,000. 

House Bill 158 also calls for the generated revenue to be used to offset the loss of exempting Social Security Income is being heard by the House Consumer & Public Affairs Committee on Thursday, February 3rd at 1:30 pm. 

You may remember that in 2006 there was an attempt to initiate a transfer tax in Santa Fe and it was soundly defeated by the electorate due mostly to the forceful efforts of the local, state, and national REALTOR® organizations. Attempts to initiate transfer taxes anywhere in the United States have been fiercely fought at all levels. 

The New Mexico Association of REALTORS (NMAR) is OPPOSED to transfer taxes on the sale of real property at any level.

As a real estate professional, we are asking you to send a message to let your Representative in the New Mexico House know of your opposition to this bill so that it does not advance. 


Some of our arguments against the bill are as follows:
  • Real estate transfer taxes are discriminatory because they are assessed against one type of asset -- real estate – while similar taxes are rarely applied to financial assets, such as stocks and bonds.
  • The narrow base of property transfer taxes places a larger burden on a small share of the population relative to broader-based taxes.
  • Property owners already pay property taxes; a transfer tax is an unfair additional tax.
  • Transfer taxes are more volatile than apparent.
  • Increased closing costs on the transfer of existing residential property are likely to reduce the ability of new and current homebuyers to purchase a home.
  • While your bill applies only for real property sold at $500,000 and above, once initiated the flood gates would be opened to lower the price threshold resulting in a very regressive tax.
  • The switch and bait aspects of the bill—eliminating taxes on Social Security for retirees but then having to pay a transfer tax—defeats the purpose of luring such retirees to Santa Fe and New Mexico.