Housing construction and tax revenue in the city of Los Angeles are being hurt by a voter-approved levy on high-priced property sales, according to researchers at the University of California at Los Angeles.
The tax on high-value properties, including multi-unit buildings, has caused a 50% drop in sales above the $5 million threshold, researchers at the Luskin School of Public Affairs estimate in a report released Tuesday.
That decline has undermined residential construction, limited new commercial and manufacturing opportunities and weakened the city’s property tax revenue growth, the researchers said. Elsewhere in Los Angeles County, sales of high-end properties have ...