Assembly Republicans ask state for temporary tax increase to fund $6,900 mansion tax

Assembly Republicans ask state for temporary tax increase to fund $6,900 mansion tax

Your guide to L.A.’s ‘mansion tax’ proposal to build more housing, Ordinance ULA-1

Assembly Republicans, who have drafted an ordinance that would impose a $6,900 mansion tax on owners of at least 2,500 square feet, are asking the state for a temporary tax increase to fund it.

The measure — first proposed by state Sen. Michael Allen (D-Chino Hills), who authored the original version of AB 562 — has split along party lines and passed both the Assembly and Assembly Budget Committee in recent weeks.

It would require owners of more than 2,500 square feet of residential real estate to pay the $6,900-a-year state tax.

The state tax is a sales tax, paid by the owner of a property with at least 1,500 square feet of living space.

Currently, those with more than 1,500 square feet pay $1,000 a month, about $10,650 a year.

The measure would exempt certain businesses, such as small restaurants or non-profit organizations, from paying the tax.

The measure is designed to balance the state’s housing shortage by building more housing.

It would raise the statewide homeownership ratio to 64.5 percent — up from the present 62.9 percent.

Its main purpose, supporters say, is to reduce the amount of new homes on the market, and to get more housing built by forcing developers to take on new projects and offering tax breaks to encourage them.

“One hundred percent of this bill would help house developers to build more homes,” Assemblyman Mike Gatto (D-La Cañada Flintridge) said, referring to the measure that the GOP proposed earlier this year.

Republicans say the measure will encourage developers to build more housing, while the state can use the resulting revenue to fund other social services and projects.

Gatto, who also is sponsoring a bill that would put the homeowners tax on

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