Measure ULA (also known as LA’s mega-mansion tax) was created to fight LA’s homeless crisis by increasing the transfer tax on properties over $5 million. The ballot measure passed during the November 8th election with around 58% of voter support. This will be the largest property tax hike in LA history. So what does this mean for LA residents?
What is Measure ULA?
Starting in April 2023, property sales of $5 million+ will be taxed an additional 4 percent and property sales of $10 million+ will be taxed an additional 5.5%. This applies to both residential and commercial properties in the City of Los Angeles and is in addition to the existing .56% combined LA City and County tax.
The measure, which stands for United to House LA, is expected to raise as much as $1 billion annually to support homelessness by building affordable housing and other related programs.

How much will this increase the transfer tax?
We calculated how much the transfer tax will be increasing for a $5 million and $10 million dollar sale and broke it down below.
Here is the breakdown for a $5 million dollar sale:
Original tax: $5,000,000 x .56% = $28,000
New tax: $5,000,000 x 4% = $200,000
$28,000 (LA City/County tax) + $200,000 (Measure ULA tax) = $228,000
That is a $200,000, or 714%, increase.
Here is the breakdown for a $10 million dollar sale:
Original tax: $10,000,000 x .56% = $56,000
New tax: $10,000,000 x 5.5% = $550,000
$56,000 (LA City/County tax) + $550,000 (Measure ULA tax) = $606,000
That is a $550,000, or 982%, increase.
Now that the measure has passed, what happens now?
This tax will affect more than just luxury home sellers. It will have an impact on landlords, renters, developers, realtors, and more. A majority of the tax will come from apartment and commercial real estate who will likely increase rental prices, and retailers who will likely increase the cost of their products. This will also have an impact on the housing inventory shortage that already exists by deterring developers from developing. There is hope, however, that it may lead to more low-income housing units.
Although Measure ULA doesn’t directly affect sales under $5 million and there is hope that the funding provided will help the homeless situation improve, it is unclear if this additional funding will have a net positive impact on the city and the homeless crisis that officials have attempted to improve for years.
Could we see an influx of high-end properties going on the market and selling before the measure goes into effect? Since this tax doesn’t affect Malibu (only the city of LA), will LA homeowners start to move to Malibu or other luxury markets outside of the city? Whatever you decide to do, whether it’s stay put or make a move, we welcome those moving to Malibu and would love to help you find your new dream home!
Questions about this new transfer tax and how it might affect you? Contact us at russellandtony@compass.com or 310.230.5771.