After one month in effect, a tax on high-end properties in Los Angeles appears to be dud. Breitbart news is reporting that Measure ULA has brought sales of luxury homes to a halt while raising little money for affordable housing. Under Measure ULA, the city collects a 4% tax on sales over $5 million and a 5.5% tax on sales of property worth $10 million or more. However, they report that wealthy homeowners rushed to sell their homes before April 1st (the day it went into effect) and pulled their homes off the market. Indeed…
“…wealthy homeowners rushed to sell their homes before April 1, when the tax began, and pulled their homes off the market thereafter, meaning that the luxury real estate market has collapsed and the city has collected essentially no revenue for affordable housing.”a
Click here to read the full story at Breitbart.com