LOS ANGELES MANSION TAX | MEASURE ULA & MEASURE GS

City of Los Angeles: Measure ULA

Effective Date: April 1, 2023
Tax Rates:
- 4% on properties sold for $5 million to $9,999,999
- 5.5% on properties sold for $10 million or more
Scope: Applies to all real estate transactions, including residential and commercial properties, within Los Angeles city limits.
Purpose: Revenue generated is allocated to affordable housing projects and homelessness prevention programs.
Additional Taxes: This is in addition to existing transfer taxes:
- City transfer tax: $4.50 per $1,000 of property value
- County transfer tax: $1.10 per $1,000 of property value

City of Santa Monica: Measure GS

Effective Date: March 1, 2023
Tax Rates:
- 5.6% on properties sold for $8 million or more
Scope: Applies to all real estate transactions within Santa Monica.
Purpose: Funds are directed towards addressing housing affordability and related community services.
Existing Transfer Taxes:
- 0.3% for properties under $5 million
- 0.6% for properties between $5 million and $7,999,999

Including the county tax of 0.11%, the total transfer tax rates are:

Impact on the Real Estate Market

A surge in high-end property sales occurred just before the taxes took effect, followed by a slowdown in luxury transactions.

Some property owners are hesitant to list high-value properties due to the additional tax burden.

Areas not subject to these taxes, like Beverly Hills, have seen increased interest from developers and buyers seeking to avoid the extra costs.

Financial Planning: Both parties should account for these taxes in their financial calculations when engaging in high-value property transactions.
Legal Advice: Consulting with real estate professionals and legal advisors is recommended to navigate these taxes effectively.

For more detailed information, you can refer to the following official resources:

For more detailed information, you can refer to the following official resources:

For more detailed information, you can refer to the following official resources: