The city of Los Angeles’ so-called “mansion tax” is here and depending on where you get your news, you may have thought that mansions themselves were all but going to disappear.
The doom’s day headlines dominated some outlets last week, but we like to live in a place of reality. So check out our quick primer on the new law (officially called the ULA tax) and how to tap into our resources with your questions and concerns:
As of April 1, the new law—approved by voters last year—will impose an extra tax on residential home sales of more than $5 million. The new law imposes a 4 percent “mansion tax” on property sales over $5 million, and a 5.5 percent tax on properties worth over $10 million.
The new tax, technically shouldered by the seller, does not apply to other cities beyond L.A. proper in Los Angeles County.
The revenue from the taxes is to be used to fund affordable housing projects and provide additional resources for homeless prevention.
Do you have questions regarding the new ULA tax? Because we’ve got experts with answers! Drop us a line at hello@californialistings.com with your questions or concerns and let our team of top agents walk you through the changes.