LOS ANGELES (KABC) — With Measure ULA set to kick in on April 1, Los Angeles may soon have hundreds of millions of new dollars available to use for affordable housing and homelessness programs.
But real-estate brokers and developers say the so-called “mansion tax” may actually slow the number of new apartment complexes being built in the city.
Voters approved the citywide tax last November, implementing an additional 4% tax on properties that sell for $5 million or more. If the property sells for $10 million or more, the tax goes up to 5.5%.
On a $10 million sale, the seller would have to pay the city $550,000 on top of all the other taxes and fees involved in selling the property.
Read more at ABC 7