Luxury Tax! It's Luxurious: A luxury tax on mansion/mcmansion…

A luxury tax on mansion/mcmansion owners may be heading to the ballot in March 2009. Today at 1pm, the Budget & Finance Committee will hold a hearing on whether to send this thing through to a vote. Via the City of LA: "Motion (Alarcon-Reyes) proposes to levy a 'luxury tax' on homes within the City of Los Angeles that exceed 5,000 square feet, with the levy beginning at $1,000 and increasing to $6,000 for homes of 10,000 square feet or more. A staff analysis of this proposal estimates that it could generate $15M per year, but would likely be invalidated as an Ad Valorem tax that violates Article XIIIA of the State Constitution. An alternative luxury tax that is not property-based, such as a levy on two categories of homes (above 5,000 square feet and above 10,000 square feet), could be feasible in that it would be less likely to be characterized as an Ad Valorem tax. Such an alternative proposal could generate $9M per year." [Daily Breeze/pictured above, City Councilman Richard Alarcon]For more stories from Curbed LA, go to la.curbed.com.