Los Angeles Realtors Experience Sell-Off Frenzy Ahead of Mansion Tax Implementation.

As Los Angeles' new "mansion tax" looms, the city's real estate market is offering deadline deals, with some properties being marketed just under the $5m tax cutoff. The tax imposes a 4% tax on property sales between $5m and $10m, and a 5.5% tax on sales over $10m. Proponents of the new wealth tax argue that multimillionaires are giving away luxury cars to avoid a tax that helps people sleeping in their cars. The tax was designed to raise public funds to prevent homelessness in one of the most expensive housing markets in the country.