A criticized “mansion tax" on high-ticket property sales in Los Angeles is heading back into the political spotlight as city officials weigh changes to the voter-approved levy meant to fund affordable housing and homelessness programs.
City Councilmember Nithya Raman, with support from Mayor Karen Bass, introduced a motion Friday to place amendments to Measure ULA on the June 2026 ballot, with a City Council vote scheduled for Tuesday.
The proposal aims to create a 15-year exemption tied to certificates of occupancy for new multifamily and commercial properties; grant a temporary exemption for first residential sales in Pacific Palisades following the fires; and allow developers more flexibility in how the funds are used.
The motion says the amendments would “create targeted exemptions, modernize administrative procedures and ensure the timely and efficient implementation of Measure ULA while protecting the City’s ability to deliver housing and homelessness programs.”
Measure ULA took effect in April 2023 and raised the city’s transfer tax to 4% on property sales above $5.15 million and 5.5% on deals exceeding $10.3 million, up from a prior rate of 0.45%. The move is among similar initiatives in cities across the country.
Because Measure ULA was approved by voters in 2022, the City Council cannot change the tax on its own, and any revisions must be approved by voters in June. The proposal, if passed, sets up a ballot fight over the future of one of Los Angeles’ largest funding sources for housing and homelessness prevention, backers say.
“Measure ULA is working,” said Joe Donlin, director of the United to House LA coalition. “Hundreds of affordable homes are rising across the city and we’re about to learn the results of the biggest affordable housing funding round in our city’s history — by a factor of five, and a standard for the future."
Donlin added that "it's irresponsible to propose changes without even an analysis of how much it would cost.” Critics of the tax, however, note that it has hindered deal volume in Los Angeles and pushed investment to other parts of the region.
Measure ULA debate
If approved by the City Council, the measure will advance to the June ballot, triggering a citywide campaign over whether to preserve Measure ULA largely as written or adopt a version with new exemptions and administrative changes.
The vote would coincide with the mayoral election, which already features 19 challengers seeking to unseat Bass, including reality television star Spencer Pratt.
The debate comes as Measure ULA has surpassed $1 billion in total revenue since voters approved it, making it one of the largest local funding sources for housing and homelessness programs in Los Angeles.
As of November, the tax had funded the start of 795 affordable homes and provided rental assistance and income support to about 10,000 residents, backers say. Los Angeles has opened applications for its largest affordable housing funding round yet, a $376 million pool fueled heavily by collections from the ULA tax. A typical year's fund would be roughly $50 million.
Supporters of Measure ULA argue the proposed amendments would reduce collections and shift money away from permanent housing and eviction prevention programs as demand for both remains high.
Critics say the tax has driven down property values and discouraged large commercial property sales by making high-priced transactions harder to pencil out. Researchers at UCLA’s Lewis Center said the measure cost the city about $25 million per year in lost tax revenue because of a drop in transaction volume from 2023 to 2025.
Some apartment developers, including Cityview and LaTerra Development, have blamed the mansion tax for hindering development and slowing investment. They warn the added cost could further discourage redevelopment in fire-damaged areas such as Pacific Palisades, where rebuilding will depend on attracting private capital.
Los Angeles leaders and taxpayer advocates have repeatedly tried to soften or undo Measure ULA since it took effect in 2023, but each effort has stalled or been struck down, underscoring how difficult it is to reverse a voter-approved tax. Proposals — ranging from the mayor’s push for wildfire-related exemptions to a statewide constitutional amendment backed by the Howard Jarvis Taxpayers Association — failed to gain traction amid legal, political and procedural hurdles.