The Budget and Finance Committee of the Los Angeles City Council is scheduled on Monday to consider a proposal to tax residents who own houses that are larger than 5,000 sq. ft.
The so-called "luxury tax" was proposed by Councilman Richard Alarcon as a way to increase revenue for Los Angeles.
Under the proposal, houses that are between 5,000 and 5,999 sq. ft. would be taxed $1,000. Every additional 1,000 square feet would be taxed another $1,000.
There are 6,336 single-family residences that exceed 5,000 sq. ft. in Los Angeles and 534 houses larger than 10,000 sq. ft. Taxing those residences would generate $15 million a year, affecting mostly homeowners in Bel Air, Beverly Crest, Brentwood, Pacific Palisades, Encino, Tarzana, Hollywood, Sherman Oaks, Studio City, Toluca Lake and the Wilshire area.
