Last Chance: Sell Your Multi-Million Dollar LA Home Before April 1st or Face Huge Tax Bill
Los Angeles homeowners are in a race against time to sell their multi-million dollar homes before the city's "mansion tax" is imposed on April 1.
The "mansion tax," or Measure ULA, was implemented to raise funds for affordable housing for LA's homeless populations.
The new tax law will make it mandatory for sellers to pay a 4% tax on properties above $5 million and a 5.5% tax on properties above $10 million.
After the deadline, home owners will have to pay over $1 million in property taxes for selling a $20 million home.
To avoid the tax, some wealthy owners have taken creative measures, such as selling furniture, artwork, and cars.
The deadline has sparked panic among home sellers, with some even shifting out of the state to avoid the tax altogether.
The law is predicted to bring in $1 billion in tax collection annually for the LA's homeless problem.
The overall effects of the "mansion tax" on the housing market and real estate industry are still unclear.
Some experts believe that the tax could discourage wealthy buyers and ultimately lead to a slowdown in the high-end housing market.
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