To the editor: The issue with the so-called mansion tax carried out by Measure ULA within the metropolis of Los Angeles is the unintended penalties that outweigh any good it does. (“L.A.’s ‘mansion tax’ has collected $375 million. The place is the cash going?” Sept. 6)
The tax isn’t just on “mansions”; it additionally consists of all actual property gross sales over $5.1 million and is the principle cause why builders are not constructing residential residences in Los Angeles. Builders typically work on a 15%-to- 20% margin, and the extra 5.5% tax on transfers better than $10.3 million (and 4% over $5.1 million) makes their initiatives untenable.
With new rental house initiatives at a halt, town not will get a proportion of low-income models from new building, and there’s much less “transfer up” housing for these in low-cost leases. The profit goes to a handful of fortunate renters whereas it hurts the bulk who can’t discover residences.
Richard Klug, Los Angeles
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To the editor: The Measure ULA tax is deeply flawed and deeply unfair for many individuals.
In my case, my home has appreciated over the previous 10 years since I bought it to about $5.25 million. I’ve plenty of fairness in the home but in addition plenty of debt. My spouse and I have to promote and need to downsize, however promoting the home with this new ULA tax will price us about $200,000. That’s cash we desperately want, and it was all the time a part of our retirement plan.
The ULA tax assumes anybody who has a home price greater than $5 million is wealthy. That’s merely false, particularly in an costly metropolis like Los Angeles.
The tax must be repealed in its present kind and made extra honest for everybody.
Philip Korman, Los Angeles
