Today I want to talk about a new measure that’ll be on the November ballot for Los Angeles. They are proposing a tax on home sales priced over $5 million. The tax will be between 4% and 5%, and this money will go toward homeless programs.
The concern with this is twofold. First, a previous ballot measure, Measure H, raised $1.2 billion in bond money for homeless programs in 2016. Second, Measure HHH raised $350 million per year for 10 years. Both of these were earmarked for homelessness programs. However, homeless issues in Los Angeles have increased despite all this money. People are concerned about how this money will be spent and whether it will help solve the problem.
Low inventory levels and the possible new taxes are going to deter a lot of sellers from wanting to put their properties on the market. We’ll keep you updated as soon as we get more information. If you have any questions, reach out to me by phone or email. I look forward to hearing from you.