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Taxes

Los Angeles Property Investors Ready Fight Against Megamansion Tax Hike

  • City Council last week voted to add measure to November ballot
  • Initiative would boost tax on property sales over $5 million
Downtown Los Angeles is seen from the balcony of a home in Beverly Hills.
Downtown Los Angeles is seen from the balcony of a home in Beverly Hills.Photographer: Patrick T. Fallon/Bloomberg

Los Angeles real estate investors are gearing up for a campaign to defeat a ballot measure that would increase a tax on the sale of multimillion-dollar properties to help pay for housing one of the biggest US homeless populations. 

The city council last week unanimously approved putting the proposal, backed by the grassroots group United to House LA, on the November ballot. It would increase the transfer-tax rate on the sale of LA residential and commercial properties of $5 million to $10 million to 4%, while those valued at $10 million or more would be charged a 5.5% rate, both up from the current 0.45%. The money would go toward new housing units and services like down-payment assistance and eviction prevention.