LA's Elite Rush to Sell Homes Before Mansion Tax Takes Effect

Sellers of luxury homes in Los Angeles are rushing to close deals before a new "mansion tax" goes into effect on April 1, adding a 4% tax for homes selling between $5 million and $10 million and 5.5% on amounts $10 million and above. Celebrities and multimillionaires are slashing prices and offering incentives such as luxury cars to entice buyers to close deals before the deadline. Brokers report a frenzy of activity, with some closing as many as 20 deals in the past 72 hours. The tax is expected to impact the local economy and lead to less development.