Measure ULA (also known as “Mansion Tax”) is scheduled to go into effect on April 1, 2023, and as the date draws near, questions continue to arise. For example: does Measure ULA affect properties in Santa Monica? Here, we discuss this topic and offer more information about Measure ULA.
What Is Measure ULA?
Before we delve into the details, here’s a primer on Measure ULA.
Measure ULA, better known by the moniker “Mansion Tax,” is a ballot measure that adds a tax on all property sales in Los Angeles. The additional tax is 4% for properties over $5 million and 5.5% for sales over $10 million.
The measure was approved by L.A. voters in November 2022 and is scheduled to go into effect on April 1, 2023. The proceeds of Measure ULA would go towards a variety of initiatives to fight homelessness in Los Angeles, which is one of the highest in the United States.
Despite the popularity of the term “Mansion Tax,” Measure ULA affects all types of properties, both residential and commercial.
Does Measure ULA Affect Santa Monica?
Measure ULA only affects property transactions within the city of Los Angeles, so it doesn’t apply to localities such as Burbank, Santa Monica, or Beverly Hills.
However, it must be noted that cities can pass measures that enact similar provisions under a different name. For example, in the case of Santa Monica, voters approved in November 2022 Measure GS, which establishes a third tier transfer tax rate of $56.000 per $1,000 of value for property transfers of $8,000,000 or more.
Similarly to Measure ULA, the stated purpose of Measure GS is to generate funds for “homelessness prevention, affordable housing, and schools.”
If you have questions about either Measure ULA, Measure GS, or other transfer taxes in Southern California, contact our commercial real estate experts now.
To learn more about Measure ULA, read our previous post, New State Ballot Initiative Would Seek To Invalidate Measure ULA.
Update: The City of Los Angeles has released an official FAQ for measure ULA. Please refer to it for answers to common questions and updates.
Disclaimer: This material is for general information and educational purposes only. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
SoCal CRE Team: Commercial Real Estate in Southern California
At SoCal CRE Team, we specialize in industrial real estate solutions in the most sought-after Southern California markets such as Los Angeles, Orange County, Riverside, Anaheim, and more.
Interested in learning more? Contact us today by telephone (714) 456-0500 or email at email@example.com