"Measure ULA's two-tiered tax on commercial and residential transactions has loomed large over dealmaking since voters passed the November 2022 ballot measure. It applies a 4 percent tax on deals starting at $5.3 million and 5.5 percent on those $10.6 million or more. It's been cited as a significant hurdle in the Palisades, a community within the city of Los Angeles, with many agents saying the assessment has stopped deals from happening."
"Bass, in a letter to members of the 15-seat City Council sent on Thursday, requested they pass an ordinance that would give the finance director the authority to enact the limited ULA pause. The move came after Bass met with developer Rick Caruso in his capacity as founder of the nonprofit Steadfast LA, which he established to aid in the rebuilding of the Palisades and Altadena after both areas were hit by wildfires earlier this year."
The Los Angeles mayor urged the City Council to authorize a temporary, one-time exemption to Measure ULA for Pacific Palisades residential properties to ease post-wildfire rebuilding. The proposed pause would be limited to residential transactions—single-family homes and condominiums—and would not be citywide. Measure ULA imposes a two-tiered transfer tax of 4 percent on deals starting at $5.3 million and 5.5 percent on deals $10.6 million or more. The tax has been cited by agents as blocking sales and reducing inventory. The mayor's request seeks to give the finance director authority to enact the limited pause after meetings with developers and nonprofits involved in recovery.
Read at therealdeal.com
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