‘Million Dollar Listing: Los Angeles’ stars warn ‘not just rich people’ affected by city’s ‘mansion tax’
What is Measure ULA in Los Angeles?
Measure ULA, also known as the "mansion tax," is a ballot initiative passed in Los Angeles that imposes a 4% tax on property sales above $5 million and a 5.5% tax on sales higher than $10 million. The funds from the tax are intended to go toward homeless and housing programs in the city.
How does the "mansion tax" impact property sales?
The "mansion tax" in Los Angeles imposes a 4% charge on property sales above $5 million and a 5.5% charge on sales higher than $10 million. This tax applies to all types of real property, not just mansions, and has led to a decrease in property sales as it significantly increases the cost of buying and selling properties above the threshold. It has also caused property values to decline and affected the entire real estate market, not just luxury properties.
What are the tax rates under Measure ULA?
Measure ULA imposes a 4% tax on property sales between $5 million and $10 million, and a 5.5% tax on sales above $10 million. The tax applies to the full value of the property, not just the portion above the threshold.