Home News Los Angeles voters deciding on ‘mansion tax’

Los Angeles voters deciding on ‘mansion tax’

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Los Angeles voters are making decisions go vote on tuesday Whether the city adopts a so-called “mansion tax” on property sales or transfers above a certain value to pay for affordable housing.

Proposed bill “United to House LA” (ULA) would establish a 4% document transfer tax on the sale or transfer of property worth more than $5 million and less than $10 million, according to city clerk According to the voter information pamphlet.for Sale or transfer of real estate Above $10 million, the proposed tax rate would be 5.5%.

Los Angeles skyline, March 2, 2017.

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non-profit organizations, eligible affordable housing organizations, Government agency Some others are exempt, according to the wording of the proposal.

According to the voter information brochure, at least 92% of the funds will “fund affordable housing under the Affordable Housing Program and Tenant Assistance Programs under the Homeless Prevention Program.”

Los Angeles

Aerial view of downtown Los Angeles business district. (iStock) (iStock)

City officials of the City of Los Angeles proposed tax It could generate between $600 million and $1.1 billion in revenue annually. However, he said it would “fluctuate” based on how many real estate transactions with value within the tax range actually occur.

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a UCLA exam Of the proposals, about 4% of the city’s real estate sales and transfers were found to be affected each year. Nearly three-quarters of the money the proposed tax would raise would come from deals worth more than $10 million, the authors wrote.

(AP Photo/John Bazemore, File)

New home for sale in Madison, GA on February 18, 2021. (AP Photo/John Bazemore, File/AP Newsroom)

Proponents of the Major ULA claim it will help reduce homelessness in cities and protect individuals at risk of becoming homeless. Others argue that it could lead to higher housing prices and increased bureaucracy.

States and other cities have enacted their own versions of so-called “mansion taxes” before.

new york city implemented one from a few years ago and a connecticut Some have their own.

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