Posted on 11/12/2023 4:17:07 AM PST by where's_the_Outrage?
Less than 10 minutes into the new season of the hit Netflix reality show "Selling Sunset," two luxury real estate brokers are already complaining about a new tax on Los Angeles' wealthiest homebuyers.
"This is going to be a nightmare for us," says veteran real estate agent Mary Fitzgerald. "We're just screwed."
The city's so-called "mansion tax" was about to go into effect when the show was filming its latest season — and the high-end real estate industry was in a tizzy. The owner of one $26 million, 13,000-square-foot home the agents were trying to sell would have to pay an extra $1.43 million in taxes under the new law. The policy, which went into effect on April 1, 2023, levies an extra 4% tax on homes sold for more than $5 million and a 5.5% tax on those over $10 million........
Colloquially known as a mansion tax, United to House LA (Measure ULA) passed in November 2022 with 58% support.
LA's law has a slew of well-heeled and vocal critics. Real estate interest groups and others have filed two suits over the policy, but both have been dismissed. The court rulings will likely be appealed, and critics of the law are planning other ways to undermine it. But for now, the tax is in effect and is expected to raise about $150 million this year......
In LA, Mayor Karen Bass and the city council have already determined what this year's tax revenue will be spent on. The biggest chunk — $56.8 million — will go to affordable housing projects. Another $30.4 million will fund short-term assistance for tenants and small landlords. And $23 million will go to providing those facing eviction with representation, the LA Times reported.
(Excerpt) Read more at businessinsider.com ...
Good post. 👍
Someone is actually taxing the rich ... that won’t last long
IMHO. The tax should be higher and broader. “Property is theft”. Talk the talk. Walk the walk. C’mon, progressives, put you money where your mouth is!
The luxury “yacht tax” was signed in 1978 by Jimmuh Carter. You can blame Bush for much, but not for that one.
IIRC-—A few episodes of This Old House were filmed in Detroit.
Ambitious buys were trying to rehab properties that were falling apart.
Detroit was selling the properties for $1. ONE DOLLAR-—to get anyone interested to rehab them.
Many people cannot see where bad ideas will lead. They are called stupid people. There are millions of them in the United States. They vote Democrat and call themselves "progressive" and "liberal" though they are neither.
Karen Bass is going to be shocked when those millionaires depart for Florida - as they are in New York City.
“New York loses 10 billionaires in four years as magnates flee for Florida”
“New York relies on the top 1% of taxpayers to pay for 42% of its tax receipts.”
What Pontiac and his Ottawas could not do to Fort Detroit in 1764 the locals did to themselves beginning in 1968.
But yachts (and the manufacture thereof) are a bit more mobile than mansions.
Regards,
I appreciate your ingenuity - but might there not be a problem with zoning regulations? Might the parcel be zoned only for single-family dwellings?
Regards,
“What is the most important factor in real estate? Location, location, location!!!”
If you voted for it, embrace the suck.
Actually isn’t any more. LA was
Agree 100% nor is the rest of the country thanks to Biden and party they take a bow.
Who did they vote for?
.....levies an extra 4% tax on homes sold for more than $5 million and a 5.5% tax on those over $10 million....
Ouch.
Article says 58% voted FOR this.
Hmmmm.....cough it up, Cher.
“Colloquially known as a mansion tax, United to House LA (Measure ULA) passed in November 2022 with 58% support.”
Anyone care to wager just how many will be housed because of this tax? Besides big butts being housed in office seats to administer the program. I’m gonna wager less than 10 families.
For me the “guns of August” has taken on a new meaning. That is when my homeowner’s renews.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.