THE MANSION TAX

What is the Mansion Tax?  Who pays?

In November 2022, Los Angeles voters approved Measure ULA.

This will help provide more money to fight homelessness.

Where is the money coming from?

When you sell your property priced from $5,000,000 to $10,000,000, you will pay an additional 4% property tax.

For those properties selling in the $10,000,000 & higher, you will pay an additional 5%!

OUCH!

This is in addition to the LA City transfer fee of 4.5% plus the LA County transfer fee of 1.1%.

So, what do you think will happen???

Home sellers in this price range may not want to increase their costs and choose not to sell.

Home builders will curtail new construction due to these increased costs.

And the “Mansion Tax” is not just for residential, but will affect the sale of commercial buildings, industrial buildings, apartment buildings and office buildings as well.

Well, there goes the profit the developers were hoping to earn!

THIS ALL GOES INTO AFFECT ON APRIL 1, 2023.

So, if you are in this category, and you are considering selling, you might want to SELL NOW!

Carol Gilles, Realtor with The RealEstate Group, has been working with both buyers & sellers in the luxury home market throughout her 40+ years.  Contact Carol at 310-864-9738, to discuss your options today!