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Million-Dollar Home Taxes: A Warning for Lakewood Across the country, cities and states are experimenting with new taxes on so-called “luxury” homes. The pitch is simple: target properties above a certain value, often $1 million or more, and funnel the money into local programs. But the reality is far more complicated—and the impacts often hit ordinary homeowners, not just the wealthy. Examples nationwide • Los Angeles voters approved Measure ULA in 2022, adding transfer taxes on sales over $5 million. The city projected $600M annually but collected under $200M in the first year. A UCLA study found multifamily housing production dropped about 18% after ULA • Chicago’s “Bring Chicago Home” referendum failed in March 2024, 52.3% to 47.7%, after voters rejected a tiered transfer tax proposal • Washington State raised its Real Estate Excise Tax (REET) to 3% on the portion of sales above $3.025M • New York State imposes a 1% mansion tax on sales above $1M and an additional graduated surcharge on properties above $2M • New Jersey adjusted its mansion tax in 2025, shifting liability to sellers and expanding applicability • Connecticut charges a 2.25% marginal conveyance tax on the portion of home sales above $2.5M • Santa Fe voters approved a 3% transfer tax on home sales above $1M, but a judge later struck it down as unconstitutional under state law • Honolulu assesses higher property tax rates on non-owner-occupied homes above $1M under its “Residential A” classification • Rhode Island enacted a statewide “property wealth tax” in 2025 on non-owner-occupied homes valued over $1M • Aspen, Colorado, has long levied local Real Estate Transfer Taxes on luxury properties What This Means for Lakewood Lakewood officials could follow the same playbook. According to the U.S. Census Bureau’s American Community Survey (2022), about 13 percent of owner-occupied homes in Jefferson County are now valued above $1 million. That’s not just luxury estates—that’s thousands of homes, many belonging to retirees and families who bought modestly decades ago and simply stayed put. And here’s the truth lawmakers don’t say out loud: these taxes will not fall on some faceless millionaire you never see. They’ll land on you, your neighbor across the street, or the senior citizen on a fixed income who happens to live in a home that’s now appraised above $1 million. The Slippery Slope The danger is that once a new tax is established, it rarely stays narrow. Today, it may target $1 million homes. Tomorrow, the threshold may be $750,000 or lower as local governments search for more revenue. Anyone who owns a home in Lakewood knows property values can rise quickly with no action of the homeowner. What seems like a tax aimed at “the wealthy” often ends up hitting regular residents. The Bigger Picture We must be honest about the philosophy behind these measures. They aren’t about fiscal responsibility or smart planning. They’re about growing government and shifting more control away from citizens. Local leaders will promise programs and benefits, but the long-term cost is higher taxes, reduced affordability, and pressure on seniors and families who want to stay in their homes. The Bottom Line Lakewood residents should treat these trial balloons in other cities as a warning. If we elect leaders who see homeowners as a convenient source of endless revenue, we shouldn’t be surprised when those same ideas show up here. If you value responsible government, fiscal restraint, and the ability for families and seniors to stay in their homes, it’s time to look closely at who you’re voting for. Because at the end of the day, these taxes aren’t about some distant millionaire. They’re about you, your neighbor, and the community we live in.