Trump Signs Executive Order Imposing 55% Federal Surcharge on California Real Estate Holdings

WASHINGTON — President Trump signed a sweeping executive order late Monday evening imposing a 55% federal surcharge on all real estate holdings in the state of California, in what the administration is calling the 'American Housing Priority Act.' The measure specifically targets individuals who own multiple properties within Los Angeles County.

The order, which takes effect immediately, applies retroactively to all property acquisitions made since January 1, 2024. Property owners with two or more residential holdings in L.A. County will be required to pay the surcharge within 90 days or face federal liens on all properties.

'California's housing market has been exploited by speculators and multi-property holders for too long,' said White House Press Secretary in a statement released shortly after the signing. 'This executive order ensures that the American dream of homeownership is protected for hardworking citizens.'

Real estate analysts estimate the order could affect approximately 340,000 property owners across Los Angeles County, with those holding properties in premium zip codes such as Beverly Hills (90210, 90211, 90212) and West Hollywood (90069, 90046) facing the steepest assessments.

The National Association of Realtors has already announced plans to challenge the order in federal court, calling it 'an unprecedented overreach of executive authority.' Legal experts, however, note that the administration may invoke emergency economic powers under the International Emergency Economic Powers Act (IEEPA).

Property owners affected by the surcharge are advised to consult with tax attorneys immediately, as the 90-day compliance window begins today. The IRS has set up a dedicated hotline for inquiries related to the new surcharge, though wait times are expected to exceed three hours.