Attention Property Owners: Los Angeles and Santa Monica Approve 'Mansion Tax' Ballot Measures, Increasing Transfer Taxes on Sales Valued at $5 Million or More

Summary

Residents of Los Angeles have approved Measure ULA, a ballot measure widely known as the "Mansion Tax," which increases transfer tax rates on real estate sales valued at $5 million or more. Prior to Measure ULA, real estate transactions in the City of Los Angeles are generally subject to a transfer tax at a 0.56% rate (which includes the county tax). The amount subject to tax is either the gross value of the property or consideration received, but reduced by lien encumbrances remaining on the property at the time of transfer.