A ballot measure in Los Angeles known as Measure ULA (“the Mansion Tax”) is likely to pass.
But it’s not just going to affect rich people. The city hopes to use the mansion tax to help the city’s most vulnerable – the homeless.
According to Bloomberg, the tax could produce around $900 million a year for housing subsidies and protections for tenants. The goal is to preserve affordable homes, guarantee counsel to tenants in eviction court, and help subsidize other progressive priorities, including helping seniors stay in their houses.
The transfer-tax rate would increase on the sale of LA residential and commercial properties of $5 million to $10 million to 4%, and those worth $10 million or more would be charged up to 5.5%.
This is a massive increase from the current rate of 0.45%.
The money from the tax separates thus:
- 70% for affordable housing (including construction, subsidies, and preservation of affordable housing)
- 30% homelessness prevention includes access to legal representation and advice for tenants to maintain housing and defend against harassment, eviction, and other aggressive acts by landlords.
Critics worry that it could drive up rental costs elsewhere, but experts who have studied the projected impacts are less worried about its effect on the rental market.
Tax is like torture for the rich, but if it is used correctly, it is very useful for the peace of all members of the society
La is turning more and more into a war zone each day. The city is a mess.
What happens if uou paid $250k to house 41 familes the iD like to hear what you all think ! Bye the way IronMan did !
Housing is not the problem. Most of these people prefer to live like this. Mental health and drug addiction.