Los Angeles' wealthiest homeowners are set to lose a fortune after the West Coast hotspot introduced a 'mansion tax' on its lucrative property market.
The policy, which came into effect April 1, will see the city take a 4 percent cut of all home sales between $5 million and $10 million.
And for mega mansions that break the $10million threshold, homeowners will lose 5.5 percent of their sale price if they decide to cash in on their estate.
According to property valuation site Zillow, 457 mansions are set to fall under the new tax rules, with the priciest homeowner in the city currently whose property is on the market potentially losing over $8.5 million.
A lavish $85 million listing would be set to lose $4.6 million under the new tax
Dubbed 'The Reserve', the abode is situated in the exclusive Holmby Hills community
The architectural gem boasts numerous features, including 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars
The LA mega mansion is also decked out with an Art Deco Hollywood inspired bar, a 1920s French regency-style cinema, a spa and a private gym
Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion every year.
The money is set to be funneled towards affordable housing and tenant assistance programs in the area, drawing funds from every housing sale in excess of $5 million.
Among the most lavish homes remaining on Los Angeles' property market is an $85 million listing dubbed 'The Reserve'.
Sitting on over 21,000 square feet of manicured landscaping, the exclusive property is found at the end of a winding driveway through California's Holmby Hills community.
Enclosed with towering palm trees and lush forestry, the architectural gem boasts 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars.
A swimming pool is joined on the grounds by a tennis court and a grand pavilion.
Constructed in 1959, the main house is a unique, single-story residence equipped with five bedrooms, floor-to-ceiling windows and classic Italian finishes.
And it is accompanied by a stunning guest house that even parallels the main mansion, also featuring five bedrooms and scenic views of the LA coastline.
The Reserve is fitted with numerous luxury amenities, also 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 $4.6 million cut of a future sale.
This lavish property is still on the market for $69 million in the heart of Santa Monica
Sat alongside the prestigious Riviera Country Club, panoramic views of the California vista are seen throughout the estate
Amenities including a private spa, home theater and indoor basketball court
The sprawling estate is also fit with a 125-foot pool, seven bedrooms and 13 bathrooms
Rivalling the reserve as one of the most expensive properties on the West Coast is a $69 million mansion set in the heart of Santa Monica.
The sprawling resort-like home's most striking feature is a 125-foot pool, joined on the property by seven bedrooms and 13 bathrooms.
Situated alongside the exclusive Riviera Country Club, panoramic views of the California oasis are seen throughout the lavish abode.
And for the huge price tag, any new owner would enjoy amenities including a private spa, home theater and indoor basketball court.
A water feature greets guests at the expansive garage with enough space for 30 vehicles, while the inside is decked out with clean white finishes, an expansive library, and a huge dining room table that can seat 25 lucky guests.
But Los Angeles' mansion tax is set to take almost $3.8 million from any future sale.
One of the most striking mansions in the entire West Coast is designed with a unique red-brick exterior
The $52 million abode comes complete with a stunning atrium entrance unlike any other
Among the luxury amenities is a private library, fitness center, lavish spa, and a unique movie theater
But if the home sells at its current market valuation, its sale would net LA a huge $2.8 million payday through the new mansion tax
One of the most striking mansions in the entire West Coast is designed with a unique red-brick exterior, making it stand out among the mega mansions that fill the region's pricey property market.
Nestled on a 4.5-acre plot, the architectural masterpiece is complete with a huge garage port, reflection pool, and an atrium entrance unlike any other.
The expansive design is littered with private decks and outdoor enclaves, befitting a property with a $52 million price tag.
Among the luxury amenities is a private library, fitness center, lavish spa including both wet and dry saunas, and a unique movie theater built in the same chic style as the rest of the home.
But while the abode will surely still attract buyers looking for a niche mega mansion, the city of Los Angeles is set to nap a $2.8 million pay day if its sells at its current market valuation.
Falling under the $10 million, this palatial mansion would still see Los Angeles officials take a $400k cut
Valued at $9.9 million,amenities include a temperature-controlled wine cellar and tasting room, swimming pool, spa and tranquil back yard
The property is complete with clean white finishes and five huge bedrooms
The listing describes it as 'designed for the ultimate entertainer', and it is one of the West Coast's most lavish properties for less than $10 million
One of the most lavish homes that will escape the extra $10 million plus price cap is a stunning palatial chateau that rivals those in the upper tier in the nation.
The listing describes it as 'designed for the ultimate entertainer', with 30-foot-high ceilings and titanic spacious rooms found throughout the sprawling property.
Every one of the living room, dining room and central 'great room' are fitted with a fireplace, with traditional finishes giving the home a classic castle-like look.
While just 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 back yard.
Still falling under a 4 percent sales tax, the homeowners' $9.9 million valuation will still bring with it a $400k penalty.
Dubbed 'Le Chateau Miramar', this scenic mansion also failed to be snapped up before the April 1 mansion tax deadline
All six of its bedrooms are fitted with ensuite bathrooms, alongside a decked-out media room, two private offices, and private gym
Listed for $7.9 million,the home would net LA a $320k tax bonus if it sells at its current market price
The home is enclosed in manicured gardens, with a stunning bay view out to the west and the California mountain range to the east
Despite being sat on the mega mansion property market for just $7.9 million, an expansive abode dubbed 'Le Chateau Miramar' failed to be snapped up before the mansion tax came into effect.
An impressive facade is enclosed with a stunning view of the bay out West and mountainous ranges to enhance the California sunset.
All six of its bedrooms are fitted with ensuite bathrooms, alongside a decked-out media room, two private offices, and a gym with a steam shower.
Numerous balconies peak out across the exterior, while its position in the Pacific Palisades putting it within touching distance of the West Coast's best hiking trails and world-class beaches.
Falling under the four percent extra tax bracket, the home would net LA a $320k tax bonus if it sells at its current market price.
