Key facts
- The Los Angeles City Council will vote on a ballot measure on July 1.
- The measure proposes to exempt new multifamily housing from Measure ULA.
- The exemption would apply to properties built in the last 10 years.
- State-level efforts to limit such taxes have previously failed.
- Measure ULA is a city transfer tax.
The Los Angeles City Council is scheduled to vote on July 1 on a ballot measure that could exempt new multifamily housing developments from the city's "mansion tax," known as Measure ULA. This proposed exemption specifically targets multifamily properties that have been constructed within the last 10 years. The move by the city council comes after state-level legislative efforts aimed at limiting or restricting the application of such transfer taxes on real estate transactions failed to gain traction. The Measure ULA, which imposes a significant tax on high-value property sales, has been a point of contention, with critics arguing it negatively impacts housing development and affordability in the city. Proponents of the exemption hope it will incentivize the construction of new housing units by reducing the financial burden on developers. The outcome of the July 1 vote will determine whether these newer multifamily buildings will be shielded from the transfer tax.