New Tax Laws…

Effective April 1, 2023, the ULA tax measure comes into effect, having a whole lot of Californians who are buying/selling a home worried about the next steps. The rate components are as follows: The Base Tax rate of 0.45% (“Base Rate”). The ULA Tax rates of 1) 4% for properties conveyed over $5,000,000 but under $10,000,000, and 2) 5.5% for properties conveyed at $10,000,000 or more (“ULA Rates”). This new tax law has one Californian feeling extremely pressed for time. The owner of this over-the-top, seven-bedroom and 11-bath mansion is facing an upward charge of $2M if the home does not sell before April 1. This owner has also already dropped the price of the home drastically since 2022, with an asking price of more than 20% lower than the original purchase price. Don’t worry; Las Vegas and Colorado will NOT be passing this same tax law, thankfully. With inflation on the rise, could you imagine being hit with an additional tax rate when selling or buying a new home? What are your thoughts on the ULA tax law? Have you heard more about this? If politicians wanted to make the State of California more money wouldn’t you charge less for people to stay?