Sizing Up LA’s New Transfer Tax
Real Estate attorney Douglas Praw spoke with The Real Deal about a new Los Angeles real estate tax set to take effect in April. All property — residential or commercial — that trades for more than $10 million will face an additional 5.5 percent tax imposed by the city. Sales between $5 million and $10 million will be subject to a 4.5 percent tax. The city is planning to use the revenue generated by the taxes for affordable housing development and rent relief. The tax is expected to have a widespread impact on the city’s luxury residential market and its commercial sector as a whole.
“It will affect sales up and down the spectrum,” said Mr. Praw.
READ: Sizing Up LA’s New Transfer Tax (Subscription required)