Bid to trim Measure ULA for wildfire victims moves forward

"A proposal to temporarily pause the mansion tax for property owners in the Pacific Palisades has new legs a month after Mayor Karen Bass first floated the idea in a letter to the city council. On Monday, the Ad Hoc Committee for LA Recovery approved a motion asking the City Attorney to report back in 30 days on the feasibility of the one-time carveout of the Measure United to House L.A. tax."

"Voters passed Measure ULA as a November 2022 ballot measure that applies a 4 percent tax on property sales starting at $5.3 million and 5.5 percent on trades of $10.6 million or more. So far, the more than $880 million generated by the tax has been funneled to programs aimed at homelessness prevention, including eviction defense services and rental assistance, in addition to building affordable housing."

"While the commercial and residential industries have blamed the tiered tax for casting a pall on deal flow and development, ULA has more recently been singled out as a hurdle to getting the Palisades a community that's part of the City of Los Angeles rebuilt following January's Palisades Fire in which 5,500 residential buildings were destroyed in the community. Councilmember and Ad Hoc Committee on LA Recovery chair Traci Park said during Monday's meeting she looked for possible ULA exemptions"

The Ad Hoc Committee for LA Recovery approved a motion requesting a City Attorney report within 30 days on the feasibility of a one-time carveout of the Measure ULA mansion tax for Pacific Palisades property owners. That procedural step likely pushes any final action or clarity on the issue into 2026. Measure ULA, passed in November 2022, levies 4 percent on sales starting at $5.3 million and 5.5 percent at $10.6 million, and has generated more than $880 million directed to homelessness prevention, eviction defense, rental assistance, and affordable housing. The tax has been blamed for slowing deal flow and is now cited as a barrier to Palisades rebuilding after a destructive January fire, prompting interest in possible exemptions given unspent ULA revenue.

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