LA’s new ‘mansion tax’ faces legal challenge
LOS ANGELES - A recently approved tax in Los Angeles on the sale of multi-million-dollar homes is facing a new legal challenge.
On Thursday, lawyers representing the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles filed a lawsuit to block Measure ULA, also known as the Homelessness and Housing Solutions Tax. They say it violates the California Constitution.
The measure, also commonly known as the "mansion tax" was approved by voters in November, which adds a 4% tax on home sales between $5 million and $10 million, and adds a 5.5% tax on sales above $10 million.
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Proceeds from the measure are to be used for affordable housing and to prevent homelessness.
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Attorneys who oppose the measure say it will harm all Los Angeles property owners "in being required to pay unconstitutionally imposed taxes," as reported by the LA Times.
Despite it passing with 58% of the vote, it’s worth noting neither mayoral candidate supported the measure.
LA Mayor Karen Bass has put tackling the homeless crisis on her forefront and declared a state of emergency on homelessness on her first day in office.