How will the proposed 10 million house property tax impact homeowners?

回答於 : 2024-07-12

參考資料

Sellers of luxury homes in L.A. are avoiding a tax to help the ...

washingtonpost.com

California's 'Mansion Tax' Means Discounts for LA Palaces ...

businessinsider.com

The year of the 'mansion tax': Hundreds of millions raised, but ...

latimes.com

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答案

完善答案

The proposed property tax on houses valued at $10 million or more, often referred to as the "mansion tax," will have several significant impacts on homeowners. Here are the key points:

### Tax Rates and Application

1. **Tax Rates**:

- **4% tax** on property sales between $5 million and $10 million.

- **5.5% tax** on property sales above $10 million[1][2].

2. **Additional Charges**:

- The new tax is added to the existing LA property transfer tax of 0.45%[2].

3. **Responsibility**:

- The seller is responsible for paying the tax, regardless of whether they make a profit or incur a loss on the transaction[2].

### Financial Impact

1. **Increased Selling Costs**:

- Homeowners selling properties valued above $10 million will face substantial new tax burdens. For example, a $38 million home sale would result in over $2 million in taxes[2].

2. **Market Effects**:

- The tax has already caused a noticeable slowdown in LA's luxury real estate market. Many potential sellers are pulling their properties off the market to avoid paying the additional taxes[3].

- Discounting of high-value properties has been observed as sellers attempt to complete transactions before the tax takes effect[2].

### Broader Economic and Social Impacts

1. **Affordable Housing and Homelessness**:

- Revenue from the tax is intended to fund affordable housing and homelessness prevention programs. Estimates suggest the tax could generate between $600 million and $1.1 billion annually[2][3].

- The LA City Council has approved a $150 million spending plan for these funds, targeting various initiatives such as eviction defense, tenant outreach, and affordable housing production[3].

2. **Criticism and Concerns**:

- Critics argue that the tax could discourage new housing developments within the city, potentially exacerbating the housing shortage[2][4].

- There is also concern that the tax will lead to higher rental prices as developers might increase rents to offset the tax burden when property values rise post-development[4].

### Summary

The proposed property tax on high-value homes in Los Angeles aims to address the city's affordable housing crisis by generating significant revenue for related programs. However, the tax places a considerable financial burden on sellers, potentially slowing the high-end real estate market and affecting overall housing development. While the long-term benefits might include more affordable housing and better support for homelessness prevention, there are valid concerns about its short-term economic impacts on homeowners and developers.