Los Angeles voters are deciding as they head to the polls Tuesday whether or not town ought to undertake a so-called “mansion tax” on property gross sales or transfers over a sure worth to pay for reasonably priced housing.
The proposed Measure “United to Home LA” (ULA) seeks to ascertain a 4% documentary switch tax on gross sales or transfers of property above $5 million however under $10 million, in accordance with town clerk’s voter info pamphlet. For property gross sales or transfers valued above $10 million, the proposed tax could be 5.5%.
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Nonprofits, certified reasonably priced housing organizations, authorities businesses and sure others could be exempt, in accordance with the textual content of the proposal.
At the very least 92% of the cash would “fund reasonably priced housing below the Inexpensive Housing Program and tenant help applications below the Homeless Prevention Program,” in accordance with the voter info pamphlet.
The Los Angeles metropolis administrative officer estimated the proposed tax may generate $600 million to $1.1 billion in income annually. Nevertheless, he famous it could “fluctuate” based mostly on what number of property transactions with values inside the scope of the tax truly happen.
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A UCLA examination of the proposal discovered about 4% of actual property gross sales and transfers within the metropolis could be impacted annually. Practically three-quarters of the cash the proposed tax would increase would come from transactions price over $10 million, in accordance with the authors, who additionally wrote it could “primarily influence giant actual property corporations.”
Supporters of Measure ULA have argued it should assist cut back homelessness within the metropolis and defend people susceptible to homelessness. In the meantime, others have argued it may contribute to larger housing costs and create extra paperwork.
States and different cities have beforehand instituted their very own variations of so-called “mansion taxes.”
New York Metropolis applied one a number of years in the past, and Connecticut additionally has its personal.
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