SANTA FE, N.M. —

An appeals court has sided with the city of Santa Fe, allowing a 3% tax on homes sold for over $1 million. The city said the revenue will be directed to an affordable housing trust fund.

"We don't want to see Santa Fe become Aspen, Colorado, where only billionaires and millionaires can afford to live. The way you don't become Aspen, Colorado, is by having more affordable housing," said Santa Fe Mayor Alan Webber.

Webber said the funds will help people afford housing, stay in their homes, buy their first home, and fix up their existing residences with rental assistance.

"That money goes into our affordable Housing Trust fund, and then when the city makes grants from that fund, whoever gets that grant money has to match it with three times their own," he said.

The tax i

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