Legal Insurrection readers may recall that in the fall of 2022, Los Angeles voters passed a referendum in the city of Los Angeles for a “mansion tax” that would impose a new transaction tax on any real estate sale in excess of $5 million. The measure passed with nearly 58% of the vote, and owners of luxury homes were selling their properties as quickly as they could to avoid being hit with….a success penalty.

Now it is being reported that luxury house sales plummet have subsequently plummeted 70% in the first year since this tax was enacted.

Launched April 1, 2023, the policy levied a four percent tax on all $5 million to 10 million property sales, while funds were programs for the homeless.

But one year later, the Measure ULA strategy has seen luxury house sales drop by 68 percent, while raising only 22 percent of its stated goal.