Los Angeles real estate deals to get hit by the new 'mansion tax' from April

The City of Los Angeles has passed a Mansion Tax that will be effective April 1, 2023, on commercial and residential real estate transactions over $5 million. The existing documentary transfer taxes in Los Angeles will not be altered by the mansion tax, but will instead incur an additional tax depending on the amount of the real estate transaction. The additional tax rate will be 4% for properties over $5 million but under $10 million, and 5.5% for properties over $10 million. Documentary Transfer Tax is calculated at the rate of $0.55 for every $500 or fractional part thereof. The additional tax rates are