L.A.'s Rich Are Already Scheming Ways to Avoid New ‘Mansion Tax’
Real Estate attorney Doulas Praw was quoted in a Los Angeles Times article about the Measure ULA —short for "United to House LA" —passing in Los Angeles. The purpose of this measure is to generate money for affordable housing and homelessness prevention by adding a one-time transfer tax on property sales above $5 million. Mr. Praw believes that the tax will affect commercial investors more than homeowners, because a larger percentage of commercial properties trade is above the thresholds of $5 million compared to a typical home.
“There’s a domino effect. Even though the tax is on higher price points, those funds have to come from somewhere.” He said.