What is mansion tax? 'Selling Sunset' Season 7 realtor Jason Oppenheim reduces listing price as he struggles to sell penthouse
BEVERLY HILLS, CALIFORNIA: The mansion tax imposes a 4 percent tax on all property sales between $5 million and $10 million, and a 5.5 percent tax on all property sales of $10 million or more. The tax is officially known as Measure ULA or the Homelessness and Housing Solutions Tax.
According to reports, the mansion tax is paid by the seller during closing. It is collected in addition to the already-existing City and County of Los Angeles real property transfer taxes of 0.56 percent.
However, the mansion tax seemed to spell trouble for Oppenheim Group as they struggled to sell two impressive penthouses. 'Selling Sunset' Season 7 realtor Jason Oppenheim revealed that he has been struggling to sell the West Penthouse in West Hollywood.
The penthouse featured 2 bedrooms and four bathrooms and sprawled around 3,820 square feet. The penthouse cost $6,995,000 and the commission was around $209,850.
However, Jason noted that the penthouse had been on the market for the last five months and he had reduced the price to $5 million.
Oppenheim Group rushes to close deals before April 2023
In the latest season of 'Selling Sunset', the Oppenheim group agents rush to help their clients close on their properties before April 1, 2023, to avoid paying this extra tax. They feared that once the tax came into effect, luxury property owners would be less likely to sell.
The mansion tax came into effect after filming for Season 7 wrapped, so the deals featured in the new season were closed before the tax was implemented.
Jason noted that after the tax was implemented, "the market will pick up a bit." He added, "I think inflation and interest rates will calm down."
Brett and Jason Oppenheim got a 'monster' listing
The Oppenheim Group was ready to move to their new Los Angeles office situated next door. However the real estate agents rang the iconic bell before this as they got a 'monster' listing.
Brett Oppenheim revealed to the team, "We just got a monster listing which you guys all saw in Cabo." The Diamante Beach estate featured 8 bedrooms and 16 bathrooms, covering a total of over 28,000 sqft.
Brett noted that the deal was a big one, "the biggest in the Cabo office, ever." The Oppenheim brothers closed the deals at $35,000,000 with a commission of $2,100,000.
'Selling Sunset' Season 7 is now available to stream on Netflix. Catch the reunion special on November 15 at 9 pm ET on the streaming platform.