Hey, listen up! Not everyone is freaking out about the Los Angeles mansion tax that kicked in back in April 2023. In fact, it’s turning into a goldmine for one super-wealthy Southern California spot that’s buzzing with new luxury housing developments.

Measure ULA—the City of Los Angeles’ luxury property tax—has drawn criticism. While it’s meant to fund low-income housing and tackle homelessness (pulling in about $215 million in its first year, according to the Los Angeles Times), it only applies to properties in Los Angeles proper—think Brentwood, the Hollywood Hills, and Bel Air.

Meanwhile, Beverly Hills, which doesn’t have this tax, seems to be benefiting. Appraiser Jonathan Miller analyzed two years of sales above $5 million in both Los Angeles and Beverly Hills. He told The Post:

“Sales are down in both markets, as in many high-end U.S. housing markets. But comparing monthly rates before and after the April 2023 mansion tax, LA sales dropped about 40%, roughly double Beverly Hills’ 20% decline. The absence of the tax may have given Beverly Hills a competitive edge.”

For well-to-do LA home sellers, the tax levies 4% on properties over $5 million and 5.5% over $10 million, slicing hundreds of thousands—or even millions—off their cash at closing. Buyers also notice: knowing they’ll lose a chunk of equity down the line can be a dealbreaker.

Beverly Hills: The Golden Ticket

The lack of a mansion tax is attracting new luxury condo developments in Beverly Hills’ Golden Triangle—the area where South Santa Monica Boulevard, Wilshire Boulevard, and Cañon Drive converge around iconic Rodeo Drive.

Take the One Beverly Hills project, a 17.5-acre development next to the Beverly Hilton. It’ll feature the Aman Beverly Hills hotel and roughly 200 residences in twin towers. Amenities? Think liveried staff, housekeeping, turn-down service, in-residence spa treatments, private chefs, a 50-foot rooftop pool, rooftop bar and lounge, and a fully equipped fitness center. Concierge services will even handle hard-to-get reservations at Funke, just a short stroll away.

And it’s not just condos. Single-family homes are thriving, too. Highlights include:

• Four-bedroom estate on Summitridge Drive: $18.99M (Douglas Elliman)

• Nine-bedroom Empire revival mansion on Beverly Park Way: $48.5M (Jones Fridman International)

• Seven-bedroom Pacific-view new-build on Laurel Way: $34.95M (Jones Fridman International)

With luxury condos and stunning estates on the market, Beverly Hills is clearly capitalizing on its tax advantage.

How the Ultra-Wealthy Feel About the Tax

Ernie Carswell of Douglas Elliman explains:

“Paying taxes is the American way. But an extra 4 or 5 million in closing costs? That’s significant, even for these buyers. They’re acutely aware of how it affects their bottom line.”

Would Beverly Hills ever implement a mansion tax? Carswell is blunt:

“No way. Luxury values would tank, and buyers would bolt. Ultra-wealthy buyers are smart—they’ll find ways to protect their money. The tax is a serious deterrent.”

Takeaway

While Los Angeles is feeling the pinch of Measure ULA, Beverly Hills is enjoying a luxury real estate boom. No mansion tax, high-end condos, and jaw-dropping estates? That’s a recipe for growth—and the ultra-wealthy are taking notice