SHOW ME THE MONEY

Los Angeles’ Mansion Tax Brought in Less Than 50 Percent of Goal in First Year

Angelenos went out of their way to avoid paying the new tax on luxury homes.

A tax levied on Los Angeles mansions raised far less cash in its first year than originally expected, but the money has kept many residents housed, LAist reports. Since being implemented in April 2023, Measure ULA was projected to raise between $600 million and $1 billion in just one year. Instead, it raised a comparatively measly $215 million. According to the Washington Post, plenty of Angelenos dumped their expensive properties before the tax went into effect. After April, many paused on selling houses with price tags over $5 million, and a few purposefully undersold their properties. ULA funding has been split between different programs, with $54.7 million to develop affordable housing, and $24 million to pay emergency rent relief for struggling tenants, according to one report. A chunk of ULA money also funded legal representation for tenants facing eviction. Some housing experts voiced concerns that the law would have a chilling effect on developers who want to build new apartment buildings costing over $5 million.