Hollywood's elite are rushing to sell their properties before Los Angeles' new "mansion tax" takes effect on April 1.
The tax, called Measure ULA, was passed in November 2022 and requires a 4% transfer tax to be paid by those selling their properties for more than $5 million, according to the Independent. It also requires a 5.5% tax to be paid on sales of more than $10 million. All funds raised will go towards public housing as part of the city's initiative to tackle the growing homelessness crisis by raising up to $1 billion from these sales.
The measure was met with backlash from estate agents warning that the wealthier homeowners will scramble to sell off their property, the Independent reported, noting that in recent months a string of celebrities including Jim Carrey, Britney Spears, and Kylie Jenner have all put their sprawling properties on the market.
In February, Carrey listed his 12,000-square-foot California home, which he owned for nearly 30 years, for almost $29 million, according to Business Insider. The property is located in Brentwood, Los Angeles.
Weeks prior, in January, Spears put her 11,650 square foot home in Calabasas on the market for $12 million, just over six months after purchasing it. In October, it emerged that Jenner had listed her Beverly Hills home for sale for more than $33 million, while Mark Wahlberg put his 30,500 square-foot mansion in Beverly Hills on the market last April. He reportedly dropped the asking price from $87.5 million to $79.5 million in November.
Commenting on the measure during an interview with The New York Times, Tyrone McKillen, a broker with the luxury agency Official said that there had been "a bit of a frenzy, with people trying to beat the April 1 date," adding that there had been a massive uptick in buyers looking to close by March 31 and using the deadline as leverage for offering a lower purchase price.
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