Wow - The Looming New Los Angeles 'Mansion Tax' !
Wednesday Mar 29th, 2023
Sellers of luxury homes in Los Angeles are scrambling to offload their properties before a new “mansion tax” takes effect on April 1.
Agents are trying their best to entice buyers with extravagant freebies before 'Measure ULA', the new tax, takes effect. The measure imposes a 4% transfer tax on property sales over $5 million and a 5% tax on properties over $10 million.
Some of the biggest Hollywood stars are rushing to sell their ultra-luxury homes. While Jim Carrey put his 12,700 sf home up for sale in February for US $29 million, Britney Spears listed her 11,650 sf Calabasas property on the market for US $12 million. Meanwhile, Kylie Jenner has her Beverly Hills home for sale for more than US $33 million.
“If you think about the money that you’ll be giving away, it might be less for you to give something to the agent or to the buyer than you’ll have to give away after you close the deal,” explains Altman.
Funds collected from the tax will be put towards affordable housing projects and providing resources to tenants at risk of homelessness according to Los Angeles Agents. However, they do not agree with the new measure and believe there may be better solutions to fund low-income housing projects.
“There are more solutions than taxing people because there’s already money out there and programs out there,” said Sullivan. “Are they being run the right way? Are they being run in the most efficient way?”
Altman calls the tax unfair because he also believes there are other ways Californians can help tackle the homelessness crisis, like making the tax relative to all property sales and not just those over $5 million.
“It could have also been off a profit, so if you make a profit off a certain percent, if it’s four or five-and-a-half percent of your profit goes towards this measure, that would be an easier pill to swallow,” said Altman.
For now, Altman says interested buyers in the market would need to put in offers as soon as possible if they’re to reap any incentives before the tax takes effect on April 1.
So.... anyone in the market for a free Porsche or Bentley?
from: Vivian Chow & Pedro Rivera KTLA, Los Angeles