A Closer Look at the Mansion Tax
✉️ Want to forward this article? Click here.
As Los Angeles looks to implement a "mansion tax" on April 1, UrbanTurf decided to take a closer look at this real estate tax, its goal and how it can affect the market.
A mansion tax is levied on high-value properties, typically defined as homes worth more than a certain amount. The tax is generally intended to raise revenue for government programs or to address issues related to housing affordability or inequality. In LA, a 4% tax will be imposed on residential property sales above $5 million, and a 5.5% tax will be levied on properties above $10 million. The tax will be used to fund affordable housing projects and homelessness prevention and is estimated to raise $672 million.
One of the main concerns with this type of tax is that it can discourage investment in high-value properties and lead to a reduction in property values. As the April 1 date approaches, news reports are highlighting how many LA homeowners with million-dollar homes are trying to sell the properties before the tax goes into effect.
story continues below
loading...story continues above
Another issue that has been raised is how the tax would be administered fairly and accurately. Determining the exact value of properties that are subject to the tax could be difficult, and lead to disputes.
In 2019, the possibility of a mansion tax was floated in DC. David Grosso, a councilmember at the time, proposed an increased tax on residential properties valued above $1 million. Grosso cited the need for additional investments in housing, schools, homelessness and other long-standing issues. The proposed legislation did not move forward.
See other articles related to: dc mansion tax, mansion tax
This article originally published at https://dc.urbanturf.com/articles/blog/a-closer-look-at-the-mansion-tax/20827.
Most Popular... This Week • Last 30 Days • Ever
![Buying with Friends: What You Should Know](https://assets.urbanturf.com/dc/images/blog/2010/05/home_value.jpg)
Here are some precautions to take before buying real estate with a buddy.... read »
![$10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/VAFX2180246_45_0_image_560x420.jpg)
The six-bedroom home listed for just south of $10 million back in June went under con... read »
![16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/2500-wilson-1_image_560x420.jpg)
The new project will take the place of an obsolete office building in Courthouse.... read »
![Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/1625-mass-1_image_560x420.jpg)
The three office-to-residential conversion projects have been conditionally awarded t... read »
![500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/parcel-6-park_image_560x420.jpg)
The plans for one of the final parcels at DC's St. Elizabeth's East campus are beginn... read »
- Buying with Friends: What You Should Know
- $10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer
- 16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard
- Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements
- 500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro