New Tax Will Be Costly For Some Los Angeles Home Owners

Los Angeles has implemented a new transfer tax, commonly referred to as 'the mansion tax', which charges a 4% tax on property sales at or above $5 million and a 5.5% tax on properties that sell at or above $10 million. The tax is meant to help fund affordable housing and homelessness prevention and will remain in effect until a time in which Los Angeles voters choose to repeal it. The tax is to be paid by the seller and the $5 million and $10 million thresholds will be adjusted annually based on inflation.