Measure ULA proposes to fund homelessness and housing affordability efforts with a new tax on property sales in Los Angeles, but not just any property. This tax would only apply to properties worth $5 million or more – hence why it has been nicknamed the “mega-mansion tax.”
If passed, Measure ULA would:
Add a 4% tax on the sale/transfer of residential and commercial properties between $5 million and $10 million.
Add an additional 5% tax on the sale/transfer of properties $10 million and up.
It is important to note that the current combined City and County tax rate is 0.56%, making this the largest property tax increase ever in Los Angeles.
In addition, the measure does not lay out a specific plan on how the money will be spent, and despite the tax only being levied on properties worth $5 million and up, the cost would ultimately be passed down to all L.A. residents in the long term. Landlords will be forced to pass the cost of the tax onto their tenants with higher rents, and store owners/retail centers will, in turn, have to raise prices for their consumers.
Our friends at Smith & Berg have done an excellent job of analyzing this ballot measure, and we thought it best to share it with you directly: