New tax: ‘Million Dollar List: Los Angeles’ star Josh Altman reveals Mansion Tax will drive people out

LOS ANGELES, CALIFORNIA: When buying a home, it can often feel like navigating a storm of fees and taxes. From lender fees to property taxes and closing costs, there are many financial hurdles to overcome to achieve the dream of home ownership.

In addition to these expenses, buyers may also encounter a mansion tax, a type of real estate transfer tax that is imposed on real estate sold above a certain threshold. This tax, which is usually associated with high-end properties, varies in amount depending on the location and sale price of the home.

For example, in New York, any property sold for more than $1 million is subject to estate tax, regardless of the type of residence. The buyer is responsible for paying this tax, which is calculated as a percentage of the sale price of the home.

Los Angeles recently implemented a new tax targeting some of its wealthiest residents and their properties to generate revenue for affordable housing initiatives.

Famous realtor and TV personality Josh Altman, known for his role in “Million Dollar Listing: Los Angeles” and as co-founder of Altman Brothers Real Estate, expressed his concerns about the implications of this new law.

“Yes, of course, it’s great because it helps the homeless and affordable housing. But they didn’t think about the other side of this measure here, where it’s actually going to drive people out of LA, which is going to take their thousands and thousands of jobs and the employees they hire with them,” Altman told Yahoo Finance.

The realtor of
‘Million Dollar List: Los Angeles’ star Josh Altman (Instagram/@thejoshaltman)

“Million Dollar List: Los Angeles” star Josh Altman reveals he got more deals before mansion tax implementation

The Measure ULA, which went into effect on April 1, 2023, implemented a new tax system for properties in Los Angeles. This system includes a 4% tax on properties sold for $5 million to $10 million and a 5.5% tax on properties sold for more than $10 million. These taxes are in addition to the half-percent tax that Los Angeles residents already pay on their homes.

“The thing is, these people who bought houses two years ago and for some reason they want to sell their house now, not only are they going to decline because the market is going down, but now they have to cut those 4% and 5.5% checks out of their pocket, because his loss. How crazy is that?” Altman added.

Altman mentioned that his company saw a significant increase in transactions as wealthy Los Angeles residents rushed to sell their properties before the tax took effect. He also stated that he was offered a large bonus on top of his regular commission if he could successfully close a specific deal worth millions of dollars.

He continued, “I can tell you, I’ve seen more deals done this month in the month of March than I’ve seen in my entire 20 years of being in any aspect of real estate – it’s just out of control right now. . Everybody’s trying close. The clock is ticking.”

'Million Dollar List: Los Angeles' star Josh Altman reveals he got more deals before mansion tax was implemented (Instagram/@thejoshaltman)
‘Million Dollar List: Los Angeles’ star Josh Altman reveals he got more deals before mansion tax was implemented (Instagram/@thejoshaltman)

‘Million Dollar Listing: Los Angeles’ star Josh Altman shares new tax would ‘damage LA real estate market’

Altman argued that the implementation of the new tax would have negative consequences on the Los Angeles real estate market as a whole, rather than solely affecting wealthy individuals looking to sell their properties. He believed that the tax would be harmful to the entire community, not just those looking to profit from selling their homes.

“It will flow to the bottom. If people think they won’t be affected because they don’t have homes that are worth more than 5 million, I promise you, they will be affected because their houses will also go down in price,” Altman told the media.

Altman strongly advocated for the implementation of alternative methods of assistance for individuals experiencing homelessness. He firmly believed in the need for diverse and innovative approaches to address the challenges facing this vulnerable population.

“I’m all about housing for the homeless, affordable housing. But there are better ways to do it, and it’s not just on houses. It’s also about commercial properties, investment properties, everywhere,” he added.

'Million Dollar Listing: Los Angeles star Josh Altman shares new tax would 'damage LA real estate market' (Instagram/@thejoshaltman)
‘Million Dollar List: Los Angeles star Josh Altman shares new tax would ‘damage THE real estate market’ (Instagram/@thejoshaltman)

Who stars in ‘Million Dollar List: Los Angeles’ Season 15?

Returning for “Million Dollar List: Los Angeles” Season 15 are agents Josh Altman, Heather Altman, Josh Flagg, and Tracy Tutor.

A press release for the upcoming season of the show reads, “After a few significantly amazing years in Los Angeles luxury real estate, the housing market has turned sour. Between high interest rates, the ‘Mansion Tax’ and low inventory. of homes, the hottest agents of the city Josh Altman, Josh Flagg and Tracy Tutor are back and feeling a new kind of heat.”

It further reads, “Stuck in the middle of a volatile market, deals are dragging, taking much longer to close than before. Agents are finding themselves accepting deals they never would have before and becoming more innovative with their strategies, using any means necessary. to close the deal.”

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‘Million Dollar Listing: Los Angeles’ Season 15 premieres on Wednesday, July 10 at 9 pm ET on Bravo.

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