[grundle]

Los Angeles voters approved a new tax on the sale of mansions worth more than $5 million. In the last month before the tax took effect, 126 of these mansions were sold. In the first month after the tax took effect, only 2 were sold.

[grobdriver]

See this is what the leftists will never understand - people change their behavior based on the left trying to punish.

Yacht tax? People buy fewer yachts - yacht builders go out of business, fewer employees paying taxes, all equaling a net loss.

Mansion tax? Fewer people buy mansions - real estate brokers, home maintenance people (who would have been fixing up those mansions for sale) all get less work, ergo fewer employees paying taxes, all equaling a net loss.

Leftists will never understand, 'cause THEY ARE STUPID!

[adorno]

Cause and effect. Simple common sense.

Tax something too much, you get less of it.

Tax someone too much, he/she will find away out of the high-tax location.

But, common sense is beyond democrats’ comprehension capabilities.

[hollywood]

Create a shared ownership property, with the number of shares equal to the desired full-property sale price divided by $4.999M. One person buys all the shares under separate contracts (?).

[Boogieman]

‘to “fund affordable housing projects and provide resources to tenants at risk of homelessness,”’

Obviously the rich are using not selling their homes as a loophole to unfairly punish homeless people. So LA needs to pass a new law that says, if a mansion is not actively inhabited for a period of more than, say, two weeks, the city can seize it and turn it into a homeless shelter. Close that loophole!

[T.B. Yoits]

This is by design. The Socialists in California government want to lock assets in the state.

https://therealdeal.com/la/2023/04/04/ocean-west-sells-hollywood-office-building-at-60-loss/

There are entire areas throughout the Rust Belt where owners couldn't afford to sell at a loss. The cities and town needed to be bulldozed decades ago but linger on.

Any property of value in Blue States that is not already owned by an LLC will be, and won't be sold ever again. The property owner will never change but the stock holders will. I expect most, if not all of them, will be incorporated as non-profits like the Black Lives Matter^TM properties.

[AlaskaErik]

You’d think there would have been lessons learned from Bush 41’s yacht tax.

[PeterPrinciple]

Remember when they raised taxes on luxury boats.......................