LA's Mansion Tax Sparks Controversy and Rush to Sell Homes.
Originally Published 2 years ago — by KABC-TV
Los Angeles' new "mansion tax" will impose an additional 4% tax on properties that sell for $5 million or more, and 5.5% on properties that sell for $10 million or more. The tax will raise about $900 million each year for affordable housing and homelessness programs. However, real estate brokers and developers warn that the tax may slow down the construction of new apartment complexes in the city, as it applies to every real estate sale within Los Angeles that is not exempt.