The group filed a brief with the U.S. Court of Appeals for the Ninth Circuit, requesting that the court overturn the dismissal of their lawsuit seeking to end the transfer tax on property sales priced $5 million and up.
Newcastle Courtyards LLC, a group that has been opposing Measure ULA since its implementation about a year ago, has revitalized its efforts by appealing a federal court ruling that dismissed their lawsuit aimed at abolishing the transfer tax on property sales priced $5 million and above.
The group submitted a brief to the U.S. Court of Appeals for the Ninth Circuit last week, urging the court to reverse the dismissal and alleging that voters were misled by proponents of Measure ULA.
The tax, often referred to as a “mansion tax,” imposes an additional 4 percent tax on sales of commercial or residential properties priced at $5 million or higher, and a 5.5 percent tax on sales exceeding $10 million.
Numerous members of the LA real estate industry have criticized the tax, claiming that it has caused a slowdown in luxury sales and discouraged investment in the City of LA.
Newcastle Courtyards and the Howard Jarvis Taxpayers Association filed lawsuits against the City of LA shortly after the tax came into effect last April.
Attorney Keith Fromm, representing Newcastle Courtyards, believes that the federal court is the appropriate venue for the case as he contends that Measure ULA violates the U.S. Constitution’s equal protection clause.
Initially expected to generate $900 million annually for affordable housing and other support funds for tenants, the tax has only brought in $181.6 million in revenue for the city one year later.
The group Newcastle Courtyards LLC has filed a brief with the U.S. Court of Appeals for the Ninth Circuit to appeal the dismissal of their lawsuit seeking to end a transfer tax on property sales priced $5 million and up, which they believe was misleadingly promoted as a “mansion tax” by the City of Los Angeles. The tax imposes additional charges on sellers of commercial or residential properties priced at $5 million or more. The group alleges that the tax unfairly targets various property types and financial circumstances of sellers and has led to a slowdown in luxury sales and discouraged investment in LA. The City of LA initially expected the tax to generate $900 million annually for affordable housing and tenant support but has only collected $181.6 million so far. The lawsuit contends that Measure ULA violates the U.S. Constitution’s equal protection clause and should be overturned by the federal court.
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