REALTORS® DEFEAT Documentary Transfer Tax increase!
The Los Angeles City Council, after hearing from a coalition of eleven REALTOR® associations for the past eight months, has discarded the idea of DOUBLING the Documentary Transfer Tax.Originally touted as the solution to close half the budget deficit, the Council recognized the volatility and unreliability of depending on the tax for their budget solution (also discarded was the increased Parking Tax).
To remove the burden from the real estate transaction and thus lowering the overall cost of homeownership, the REALTOR® coalition proposed an alternative that was eventually supported by the City Council.That is a ½ cent sales tax that applies to ALL consumers in Los Angeles, not simply a tax on those who own property.The sales tax will apply equally to tenants (Doc. Trans. Tax is not a pass-through under Rent Control), property owners, tourists, and anyone else doing business in Los Angeles.
While this ½ cent sales tax and recently passed Proposition 30 will increase the sales tax in Los Angeles, the tax will still be below the amount paid up until July 1, 2012, when a state sales tax expired.
The ½ cent sales tax will be on the March 2013 ballot along with the Mayor, City Attorney, Controller, and eight Councilmembers (the odd-numbered Council Districts are up for election).
A big win for the REALTORS® and for any family or business wanting to invest in Los Angeles.