With Only $55 Million In Coffers, Los Angeles Plans to Spend $150 Million From Mansion Tax
L.A.’s mansion tax redistributes money from the sales of houses above $5 million. The law, which took effect on April 1, charges 4% on all residential and commercial real estate sales in the city above $5 million and a 5.5% charge on sales above $10 million.
Initially, proponents estimated the tax would raise about $900 million per year, but a March report from the City Administrative Office lowered that number to $672 million, The Los Angeles Times reported.
“But once the tax took effect, L.A.’s luxury market froze,” The Times reported. “Only two homes sold for more than $5 million in the month of April, and the market hasn’t quite recovered since.”
Luxury homeowners seeking to avoid the tax have either refused to sell their homes or hired tax specialists to find loopholes, The Times reported.
Perhaps someone should have clarified that it’s really “Tax, Collect, and Spend”.
Or, don’t plan on spending it before you’ve got it!
Same thing happens with every new obnoxious tax the Dems and Socialists come up with. Be it soda, booze, or luxury homes; people, especially rich people with lawyers, are going do everything in their power to avoid paying out to the grasping Democrats attempts get their sweaty hands on ‘Other Peoples Money’.
Oh, and the new tax may be unconstitutional. As if anyone cares.
On the North River 
Oy!! Btw, Allis
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Politicians are greedy, selfish and narcissistic. NOT intelligent. For nearly forever it’s been known that raising taxes does NOT generate an equally sized increase in revenue. People have always found ways around onerous taxation. The “mansion tax” is no different. But politicians are scrupulous in their ability to ignore history or to learn from the past…or anything else.
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