The Los Angeles City Council agreed Tuesday to reschedule two separate but related motions seeking to carve out exemptions for property owners who were impacted by the Palisades Fire, as well as certain nonprofits, from the city’s so-called “mansion tax.”
The two items were on Tuesday’s agenda, but City Council President Marqueece Harris-Dawson rescheduled them. The Measure ULA-related motion involving the Pacific Palisades is expected to be discussed Wednesday.
Councilwoman Traci Park, who represents the Palisades, has sought a ballot measure to amend the property transfer tax. Park is asking for a one-time, five-year exemption from Measure ULA for owners of residential properties who were impacted by the January 2025 fire.
Another proposal that aims to provide refunds to nonprofits that were subject to the tax was rescheduled for discussion to June 26. This recommendation came from the Ad Hoc Committee on Measure ULA.
If approved, the proposal would authorize city staff to draft an amendment to Measure ULA, authorizing refunds to nonprofits that have paid the tax and are re-investing the proceeds of the sale of their property toward programs that support low-income seniors or people with disabilities with affordable housing, or income support.
These two motions come as the City Council attempts to amend Measure ULA after concerns were raised that it was hurting the construction of affordable housing. In May, a three-panel council committee led by Councilwoman Ysabel Jurado declined to recommend a ballot measure to reduce the measure’s tax rate.
However, when the matter comes before the full City Council, elected officials could decide to do so anyway if they have enough votes.
The Ad Hoc Committee on Measure United to House Los Angeles voted 2-1 to instruct the Housing Department to work on a pilot financial assistance program and a proposal to lower the tax rate on the sale of certain buildings. Council members Jurado and Imelda Padilla voted in favor, while Councilman John Lee voted no.
The action substituted a motion introduced by Harris-Dawson and Lee, who sought a ballot measure to amend ULA’s transfer tax rate from 5% to 5.5% to 2% to 3.5% on the sale of properties above $5 million and $10 million.
The proposed cap rates were suggested for single-family homes, not-for-profit medical, educational and or arts facilities.
The duo also sought to allow each City Council member to access ULA dollars and use them as they see fit, which could include street homelessness response and interventions.
Approved by voters in 2022, Measure ULA established a transfer tax on property valued above the annually adjusted $5 million and $10 million. The tax encompasses the transfer/sales of mansions, apartments, commercial buildings and multi-family housing, among other categories of buildings.
The measure took effect April 1, 2023, and through April 30, 2026, it has raised nearly $1.2 billion from 1,633 real estate transactions, according to Housing Department officials.
Any significant alterations approved by the full council are expected to be placed before LA voters on the November ballot.