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News

'Luxury' Proposal Would Tax Large House Owners

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The Spelling Manor in Holmby Hills | Photo by Atwater Village Newbie via LAist Featured Photos on Flickr

A proposal to tax home owners of properties larger than 5,000 square feet at least $1,000 annually will be discussed at a Los Angeles city council committee meeting today. If it makes it through the city process, two-thirds of voters would have to pass the tax (low and middle class vs. the rich?). "There are 6,336 single-family residences that exceed 5,000 square feet and 534 houses larger than 10,000 square feet. Taxing those residences would generate $15 million a year," reports the Daily News.

However, "a report by the Chief Legislative Analyst found the 'luxury tax' would violate the state constitution if it is based on increments of 1,000 square feet. The CLA recommends that houses between 5,000 square feet and 10,000 square feet be taxed $1,000 and houses larger than 10,000 square feet be taxed $6,000. That proposal would generate $9 million a year." What do you think?