LA’s mansion tax backfires: 9,100 homes and 16,650 jobs lost

Los Angeles's "mansion tax" has backfired, blocking construction of 9,100 homes, eliminating 16,650 construction jobs, and costing $452 million in revenue, according to a new RAND report. The tax, which applies to properties selling above $5.4 million, raised only $1.2 billion against a projected $2.7 billion over three years. High-value property sales dropped 31%, with apartment and commercial sales falling over 46%, as developers and owners avoided transactions. Critics argue the tax deters market-rate housing, undermining affordability goals. The city has spent just $114 million of funds raised, and a proposal to reform the tax failed to reach the ballot.