LA's Wealthiest Brace for Losses as New Mansion Tax Takes Effect.

Los Angeles has introduced a "mansion tax" on its property market, which will see the city take a 4% cut of all home sales between $5m and $10m, and 5.5% of sales over $10m. The tax is expected to raise between $600m and $1.1bn annually for affordable housing and tenant assistance programs. 457 mansions are set to fall under the new tax rules, with the priciest homeowner potentially losing over $8.5m. Some of the most expensive homes on the market, including an $85m listing and a $69m mansion, will be affected by the tax.