That must hurt! LA’s richest stand to lose up to 8.5 MILLION when new California mansion taxes hit

• A new mansion tax has come into place in Los Angeles
• The wealthiest property sales will be hit by a tax of 5.5 per cent
• Mega mansions in the area could see over $8.5 million go to the city

Los Angeles’ wealthiest homeowners are set to lose a fortune after the West Coast hotspot introduced a “mansion tax” on the lucrative real estate market.

The guidelines, which took effect April 1, will see the city take 4 percent of all home sales between $5 million and $10 million.

And for large mansions that break the $10 million threshold, homeowners will lose 5.5 percent of the sales price if they decide to monetize the property.

According to real estate review site Zillow, 457 mansions are set to fall under the new tax rules, with the most expensive homeowner in the city currently having property on the market potentially losing over $8.5 million.

Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion each year.

The money will be used for affordable housing and tenant assistance programs in the area, drawing funds from every home sale over $5 million.

Among the most lavish homes left on the Los Angeles real estate market is an $85 million listing called ‘The Reserve’.

Sitting on over 21,000 square feet of manicured landscaping, the exclusive estate sits at the end of a winding driveway through California’s Holmby Hills community.

Surrounded by tall palm trees and lush forestry, the architectural gem has 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars.

A swimming pool is connected on the grounds by a tennis court and a magnificent pavilion.

Built in 1959, the main house is a unique one-story residence equipped with five bedrooms, floor-to-ceiling windows and classic Italian finishes.

And it’s accompanied by a stunning guest house that even parallels the main mansion, also with five bedrooms and scenic views of the LA coastline.

The reserve is equipped with a range of luxurious facilities, including an Art Deco Hollywood-inspired bar, a 1920s French Regency-style cinema, a spa and a private gym.

But since it failed to sell before the April 1 deadline, the city of Los Angeles will now take a healthy cut of $4.6 million from a future sale.

A $69 million mansion, rivaling the Reserve as one of the most expensive properties on the West Coast, sits in the heart of Santa Monica.

The sprawling resort-like home’s most striking feature is a 125-foot pool, along with seven bedrooms and 13 bathrooms on the property.

Located adjacent to the exclusive Riviera Country Club, panoramic views of the California oasis are seen throughout the opulent residence.

And for the huge price tag, any new owner will enjoy amenities including a private spa, home theater and indoor basketball court.

A water feature greets guests in the expansive garage with enough room for 30 vehicles, while the interior is decked out in clean white finishes, an expansive library and a large dining table that seats 25 lucky guests.

But the Los Angeles mansion tax is set to take nearly $3.8 million from any future sale.

One of the most striking mansions on the entire west coast is designed with a unique red brick exterior, making it stand out among the large mansions that fill the region’s expensive real estate market.

Set on a 4.5 acre lot, the architectural masterpiece is complete with an enormous garage door, reflecting pool and an atrium entrance unlike any other.

The expansive design is full of private decks and outdoor enclaves, befitting a property with a $52 million price tag.

Among the luxury facilities are a private library, fitness centre, sumptuous spa with both wet and dry saunas, and a unique cinema room built in the same elegant style as the rest of the home.

But while the home will surely still attract buyers looking for a niche mega-mansion, the city of Los Angeles is set to take a $2.8 million payday if it sells at its current market value.

One of the most opulent homes to escape the extra $10 million plus price cap is a stunning palatial castle that rivals those in the nation’s top tier.

The listing describes it as “designed for the ultimate entertainer,” with 30-foot ceilings and titanic spacious rooms found throughout the sprawling property.

Each of the living room, dining room and central “great room” is equipped with a fireplace, with traditional finishes that give the home a classic castle-like appearance.

While only five bedrooms may be one of the reasons for the lower-than-expected price tag, it does include amenities such as a temperature-controlled wine cellar and tasting room, swimming pool, spa and tranquil backyard.

Still falling under a 4 percent sales tax, the homeowners’ valuation of $9.9 million will still carry a $400,000 penalty.

Despite sitting on the big mansion market for just $7.9 million, an expansive residence called ‘Le Chateau Miramar’ failed to be snapped up before the mansion tax came into force.

An impressive facade is enclosed with a stunning view of the bay to the west and mountain ranges to enhance the California sunset.

All six bedrooms are en-suite, along with an ornate media room, two private offices and a gym with a steam shower.

Numerous balconies peak beyond the exterior, while its location in Pacific Palisades puts it within touching distance of the West Coast’s best hiking trails and world-class beaches.

Falling under the four percent additional tax bracket, the home would give LA a tax bonus of $320,000 if sold at current market price.