The Los Angeles City Council declined to hear a motion to place a measure on the June ballot that would amend the city's criticized "mansion tax" that puts a levy on high-ticket property sales.
Instead, the measure was sent back to the council's Housing and Homeless Committee for further analysis and public input.
City Councilmember Nithya Raman, backed by Mayor Karen Bass, introduced a motion Friday to place Measure ULA amendments on the ballot. The proposal would create a 15‑year exemption from the tax for new multifamily and commercial projects based on their certificates of occupancy, provide a temporary exemption for first residential sales in Pacific Palisades following the fires, and give developers more flexibility in how ULA funds may be used, among other changes.
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%.
Los Angeles leaders and taxpayer advocates have repeatedly tried to soften or undo Measure ULA since it took effect, but each effort has stalled or been struck down. 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.
Supporters of the tax claimed victory on Tuesday.
“ULA is working, and the rest of LA’s real estate market is rapidly adjusting to it,” said a statement from Joe Donlin, director of the United to House LA coalition. “It would be catastrophic to give away LA’s best tool in the fight against the housing crisis as a developer tax break because of sloppy math and a rush to judgment.”
But the measure has also discouraged commercial investment in Los Angeles and hurt property values, critics say. According to Raman, Los Angeles multifamily permits have declined 27% since the tax took effect, with buildings of more than five units leading the drop.
"Multifamily, mixed-use housing, commercial production has slowed in the city of L.A., lenders and investors are backing away from this city entirely," Raman said in a speech to the council Tuesday.
Measure ULA had raised $1.03 billion as of November 2025. It has funded the start of 795 affordable homes, and kept 10,000 Angelenos in their homes through rental assistance and income support, according to supporters.
“Los Angeles is in the midst of a housing and homelessness crisis, and the only proven way to move people off the streets and into stability is to build and preserve deeply affordable housing," said a statement from Grant Sunoo, director of community building and engagement at Little Tokyo Service Center, the developer of a 187-unit ULA-funded apartment building at 1021 N. Vermont Ave. in East Hollywood. "With federal support uncertain and unstable, local funding like measure ULA is more important than ever."