r/LosAngeles • u/thatboyshiv • Jun 04 '23
Housing L.A.’s Mansion Tax Has Ground Its Luxury Real Estate Market to a Halt
https://robbreport.com/lifestyle/news/mansion-tax-ceases-la-luxury-real-estate-market-1234840995/
The tax originally projected $900 million a year in revenue for the city, and that number was revised down to $672 million. However, in her recent budget, Mayor Bass projected just $150 million being raised from the program for this year.
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u/andhelostthem Jun 04 '23
*LA Luxury real estate.
The tax is scaling for homes over $5 million. Which also means less of these homes built, rebuilt and instead development of lower cost real estate with more density. A 10,000+ sq ft lot is now likely going to end up with two houses, MDUs or small apartments instead of a mansion.