L.A. Luxury Home Market Collapses In First Year Under ‘Mansion Tax’

FILE - The Hollywood sign is pictured on Sept. 29, 2022, in Los Angeles. The Hollywood sign is getting a makeover befitting its status as a Tinseltown icon. After a pressure-wash and some rust removal, workers this week began using 250 gallons of primer and white paint to spruce up the sign ahead of its centennial next year. (AP Photo/Chris Pizzello, File)

Luxury home sales in Los Angeles have been decimated by the so-called ‘mansion tax’ one year since it came into effect.

Launched April 1, 2023, the policy levied a four percent tax on all $5 million to 10 million property sales, while funds were programs for the homeless.

But one year later, the Measure ULA strategy has seen luxury house sales drop by 68 percent, while raising only 22 percent of its stated goal.

Some 366 single-family homes were sold in the 12 months before April 1, 2023, versus 166 sold in the year since, according to the Los Angeles Times.

Local real estate developer Hooman Ghaffari blasted the policy as ‘a sham’ that has ‘yet to come close to meeting stated goals’ while making new developments ‘financially unworkable’.

Click here to read the full story in the Daily Mail.