Britney Spears, Kylie Jenner, Jim Carrey and Mark Wahlberg all own or have owned mansions in Los Angeles. On April 1, owners of mansions that cost over $4 million will have to pay a 4% transfer tax. People who sell their mansions of over $10 million will be required to pay a 5,5% transfer tax. All funds gathered through this tax will go towards the housing system in LA.
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Where is the money going?
The money generated from this new 'mansion' tax, which therefore only applies to people who own mansions worth over $5 million, will be entirely used to fund new affordable housing projects. The Los Angeles Homeless Services estimates that around 28,000 were homeless in LA in 2016, a number which has gone up significantly to reach 42,000 people today.
The city is hoping to gather $1 billion thanks to this tax, to fight the ever-growing homelessness crisis in LA, but also to provide financial assistance to senior citizens in need. California is the state with the highest rate of poverty in the US.
LA has introduced a wealth tax on houses. Consequently, house prices at the top end are collapsing, future revenues will be lower, & the successful are leaving, taking their spending money & talent with them.
— Andrew Gibson (@AndrewGibsonMBA) March 26, 2023
Socialism = Envy = Collapse & Degradation.https://t.co/3ALfBHXu6n
The tax was passed with 57 per cent of voters in November 2022, after several unions and housing advocates fought to get it on the ballot. It has faced significant backlash, including from real-estate agents who warned it would cause a 'frenzy' among mansion owners to sell their homes to avoid the tax. Since then, several big names in the City of Angels such as Jim Carrey, Kylie Jenner and Britney Spears have put their homes up for sale.
Read more: Camilla Parker-Bowles' £850K mansion where she can be 'relaxed on my own terms' without Charles
Who is selling?
Mark Wahlberg finally sold his mansion for $55 million, after having originally sought to sell it for $87,5 million. He had put his Beverly Hills home on the market last April, and he sold it in February this year, after having significantly dropped his original price.
Jim Carrey hasn't sold his home yet, which he has inhabited for the last 30 years. The 12,700 square feet mansion, which also comes with a professional tennis court, waterfall pool, gazebo and infrared sauna, is supposed to be worth $28,9 million. The actor told the Wall Street Journal he was selling his home because he wants 'someone else to enjoy it like I have' before quoting David Bowie's song Changes.
LA enacts a mansion tax with the proceeds going to help public housing. One of those things important to #Democrats to show equity, oneness. What do all the rich #Hollyweirdos do? Sell their mansions & move out of LA. Probably out of state.
— El Oso (@mustang42f) March 27, 2023
Britney Spears' 11,650 square feet home is also up for sale at approximately $12 million, only six months after she and her husband purchased it. The mansion previously belonged to Justin and Hailey Bieber, and is situated down the road from her ex-husband Kevin Federline and their two sons.
Britney is reportedly selling the $11.8 million home she and Sam recently moved into. Britney is ditching the 11,650 sq. foot home in Calabasas and, at least for now, is staying put in her Thousand Oaks home that she's been in for the last seven years (since 2015). pic.twitter.com/13V279xZEM
— BreatheHeavy (@breatheheavycom) January 2, 2023
Read more:Kylie Jenner and Travis Scott are selling their LA mansion for a whopping $22 million
Will Prince Harry and Meghan be affected?
The Prince and Meghan Markle moved to California in 2020 after resigning from the Royal Family and therefore leaving their English home of Frogmore Cottage, having invested approximately £3 million in renovations. They first stayed with actor and friend of the couple Tyler Perry, before purchasing their own $21 million mansion in Montecito.
According to Harper's Bazaar, the Duchess told The Cut magazine that the 16-bedroom estate makes her 'feel free', and she described her home as 'calm and healing'.
The mansion also includes a tennis court, a swimming-pool and rose gardens.
moment of appreciation for how beautiful harry and meghan's montecito home is pic.twitter.com/hVivpnpCUF
— michelle (@ddarveyy) August 4, 2021
For now, the new 'mansion' tax is only implemented in Los Angeles which means Prince Harry and Meghan will not be affected by the new and expensive policy. However, if it does spread to other parts of California, the royals will have a very important decision to make about their family and future.
Read more:Prince Harry and Meghan: Rumours they want to move yet again sparked by 'insider'
Sources used:
The Independent: Hollywood stars scramble to sell homes ahead of Los Angeles’ new ‘mansion’ tax
Ideal Home: Inside Jim Carrey's £23.9m LA home – the garden is a masterclass in zoning
Daily Mail: Britney Spears is 'selling her $12million Calabasas mansion just SIX MONTHS after purchasing it'
Wall Street Journal: Jim Carrey Lists L.A. Home of Nearly 30 Years for $28.9 Million
Harper's Bazaar: A glimpse inside Meghan Markle and Prince Harry’s $21 million Montecito mansion
