Impact of 'Mansion Tax' on Luxury Home Sales in Los Angeles

SOURCE www.dailymail.co.uk
Luxury home sales in Los Angeles have drastically decreased due to the 'mansion tax' introduced in April 2023, with sales dropping by 68% and only raising 22% of the expected funds for homeless programs. The tax applies a four percent fee on $5 million to $10 million property sales.

Key Points

  • Luxury home sales decreased by 68% after the introduction of the 'mansion tax'
  • Tax revenue fell short of the predicted amount, raising only 22% of the goal
  • Some properties saw significant devaluation post-tax implementation

Pros

  • Policy aims to raise funds for homeless programs
  • Tax revenue increased month-by-month

Cons

  • Luxury home sales dropped by 68%
  • Only raised 22% of expected funds