City of Los Angeles Measure ULA
Measure ULA: commonly known as the “mansion tax” imposes a New Transfer Tax on Los Angeles Residential and Commercial Real Property Sales Over $5 Million
The new fees will be levied at the time of sale at a rate of 4% for properties between $5 million and $10 million, and 5.5% for those $10 million or above.
The money raised will be set aside for the production and acquisition of affordable housing, as well as homelessness prevention measures in the form of rent relief, income support for rent-burdened seniors, and legal counsel for tenants facing eviction.
The tax will affect approximately 4% of Los Angeles’ real estate transactions in a given year.
Annually adjusts the property value thresholds based on the Chained Consumer Price Index
Is a permanent tax until repealed by voters
SAMPLE SCENARIOS - AS OF 4/1/2023 - SELLERS WILL BE FACED WITH:
SCENARIO 1: A property sells for $5,500,000
CURRENT TAX: $4.50 per $1,000 | City Tax +$1.10 per $1,000 | County Tax $5.60 x $5,500 = $30,800
NEW TAX: $40.00 per $1,000 | ULA Tax +$4.50 per $1,000 | City Tax +$1.10 per $1,000 | County Tax $45.60 x $5,500 = $250,800 (714% tax increase)
SCENARIO 2: A property sells for $12,000,000
CURRENT TAX: $4.50 per $1,000 | City Tax +$1.10 per $1,000 | County Tax $5.60 x $12,000 = $67,200
NEW TAX: $55.00 per $1,000 | ULA Tax +$4.50 per $1,000 | City Tax +$1.10 per $1,000 | County Tax $60.60 x $12,000 = $727,200 (982% tax increase)
This new tax is applicable to all types or property sales including residential, commercial, multi-family, etc. in addition to the existing .045% LA City tax and the .011% County tax on all real estate transactions.