Thanks to a tax scam, to lower the value of high priced homes, the rebuilding of the Palisades may not happen.
“Measure ULA, passed by voters in 2022, imposes a 4% tax on property sales above $5 million and a 5.5% tax on those exceeding $10 million, with inflation adjustments. The measure was projected to generate between $600 million and $1.1 billion annually, with proceeds earmarked for homelessness prevention and affordable housing initiatives. However, actual revenue has fallen significantly short of expectations.
In its first full fiscal year, which ended June 30, 2024, the tax brought in $296.7 million, less than half of the measure’s lowest revenue projection. As of early December 2024, Measure ULA had generated $480 million in total since its implementation on April 1, 2023, but only $45 million had been spent.
Of the funds spent so far, $35 million went to the Southern California Housing Rights Center, a nonprofit organization that provides tenant representation services.
Where has the rets of the money gone? As best as can be told, it looks like a backdoor way to finance her massive deficit. Worse the value of homes went down—and that LOST property tax money. This is a loser and a scam. End it, do not suspend it.
L.A. Mayor Karen Bass Weighs Suspending Measure ULA as Wildfire Recovery Efforts Begin
Current Staff, 3/11/25 https://www.westsidecurrent.com/news/l-a-mayor-karen-bass-weighs-suspending-measure-ula-as-wildfire-recovery-efforts-begin/article_287a6282-fed3-11ef-9174-53e04f142a18.html?utm_source=westsidecurrent.com&utm_campaign=%2Fnews%2Fl-a-mayor-karen-bass-weighs-suspending-measure-ula-as-wildfire-recovery-efforts-begin%2Farticle-287a6282-fed3-11ef-9174-53e04f142a18.html%3Fmode%3Demail%26-dc%3D1741737361&utm_medium=auto%20alert%20email&utm_content=headline
LOS ANGELES — Mayor Karen Bass said Tuesday that her administration and the Los Angeles City Council are exploring ways to suspend Measure ULA, the city’s contentious real estate transfer tax, as part of efforts to support the rebuilding of areas devastated by recent wildfires.
“We’re looking into that,” Bass said when asked about the possibility at a press conference, according to Breitbart News. “Because there’s two schools of thought. One is, is that can’t happen, it has to go back to voters. And the other is, is that it might be able to happen, with action from the council and the mayor’s office. So we’re having that investigated through our attorneys right now.”
The statement marks the first time Bass has publicly acknowledged the potential suspension of the tax, which has been criticized for underperforming revenue projections and exacerbating the city’s struggling commercial real estate market. Several state and federal lawsuits have challenged the constitutionality of Measure ULA, adding uncertainty to its future.
Measure ULA’s Financial Shortfall
Measure ULA, passed by voters in 2022, imposes a 4% tax on property sales above $5 million and a 5.5% tax on those exceeding $10 million, with inflation adjustments. The measure was projected to generate between $600 million and $1.1 billion annually, with proceeds earmarked for homelessness prevention and affordable housing initiatives. However, actual revenue has fallen significantly short of expectations.
In its first full fiscal year, which ended June 30, 2024, the tax brought in $296.7 million, less than half of the measure’s lowest revenue projection. As of early December 2024, Measure ULA had generated $480 million in total since its implementation on April 1, 2023, but only $45 million had been spent.
Of the funds spent so far, $35 million went to the Southern California Housing Rights Center, a nonprofit organization that provides tenant representation services.
Impact on the Real Estate Market
Though branded as a “mansion tax”, the measure has had a greater impact on commercial properties and rental apartment buildings than on single-family luxury homes. The tax has contributed to a nearly 40% decline in sales of office, retail, industrial, and multifamily properties, according to the Los Angeles Times.
As for when and where the question about the tax was asked. Bass was touring one of four Impacted Worker and Family Recovery Centers when, which have been set up to assist individuals who lost jobs due to fire-related destruction. Many of the businesses destroyed—such as retail stores, restaurants, and office buildings—could be subject to Measure ULA’s tax when sold, raising concerns about additional financial burdens on property owners looking to rebuild.
