Breaking down the LA 'Mansion Tax' which takes effect April 1
Los Angeles residents are bracing for the start of a new real estate tax that will impact sellers of homes worth over $5 million dollars. Yahoo Finance’s Dave Briggs and Seana Smith break down the new tax rules.
The city of Los Angeles approved Proposition ULA in November of 2022. The measure calls for a 4% tax on properties sold or transferred for more than $5 million dollars and a 5.5% tax on properties sold or transferred for more than $10 million dollars.
The tax money will fund affordable housing projects and provide resources to tenants at risk of homelessness, according to the LA Office of Finance.
Key video moments
00:28 On tax rule breakdown
00:58 On cost to seller of a $10M home
