According to a statement, proponents of The Taxpayer Protection and Government Accountability Act have gathered enough signatures to put up the initiative for a statewide vote in 2024. Keep reading to learn more.
New State Ballot Initiative Seeks to Invalidate L.A’s Mansion Tax
Costar and The Real Deal report that proponents of a new state ballot initiative that seeks to invalidate L.A.’s “Mansion Tax,” or Measure ULA, have garnered enough signatures for the proposal to appear on the 2024 ballot.
Measure ULA, a ballot measure approved by Los Angeles voters in 2022 and scheduled to go into effect on April 1, 2023, aims to reduce the city’s homelessness problem by imposing a new transfer tax on all properties (both residential and commercial): 4% for properties valued between $5 and $10 million, and 5.5% for properties valued at $10 million or more. The current rate is 0.45%.
If approved, the new ballot initiative would mandate that all new taxes passed by the California State Legislature be approved by voters, and require approval by two-thirds of voters for all new local special tax increases.
The Impact on Measure ULA
Crucially for measure ULA, the ballot initiative yet to be approved includes provisions according to which any local tax imposed between January 2022 and November 2024 by fewer than two-thirds of the votes would be voided. Measure ULA passed with 57% support, falling short of the two-thirds proposed requirement.
However, as Costar notes, the new ballot initiative also includes mechanisms to reinstate those taxes as long as they are approved by at least two-thirds of the voters within one year.
The new ballot initiative is just the latest push against Measure ULA, which has also been challenged in court by A coalition of real estate and anti-tax groups.
To learn more about the impact of all these developments on commercial real estate, contact our experts at SoCal CRE Team. We’ll be happy to answer all your questions.
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.
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