Developer Rick Caruso, who is leading a nonprofit initiative to rebuild areas affected by recent wildfires in Los Angeles, said Monday that the Measure ULA tax on property transactions has resulted in reduced revenue for the city.
Measure ULA, dubbed a “mansion tax” by proponents, was passed by voters in a 2022 referendum and went into effect in 2023. It affects both residential and commercial buildings, and has slowed down the local real estate market significantly.
As Breitbart News noted at the time, Measure ULA requires the city “to collect a 4% tax on sales over $5 million, and a 5.5% tax on sales of property worth $10 million or more.” (The minimum thresholds are continuing to rise over time.)
Though the tax was supposedly meant to provide funding for affordable housing and homelessness, it has produced far less revenue than projected, because there have been fewer transactions, largely as a result of the new tax.
There are concerns that Measure ULA could also hurt the rebuilding effort in the Pacific Palisades, because it would make property harder to sell, and could add to the costs of rebuilding, as homeowners would have to factor it into the financing…
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