In November 2022, City of Los Angeles voters approved Measure ULA, an initiative that imposes a new 4% to 5.5% transfer tax on high-value real estate transfers for special purposes related to housing.
The California Constitution (Proposition 13) prohibits real estate transfer taxes for special purposes. The Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles have filed a legal challenge to this law.
The City of Los Angeles began collecting the tax April 1, 2023. If our legal challenge ultimately succeeds, and you paid this tax, refunds may be available. Only payers who filed a timely claim will be eligible for a refund.
We have received conflicting advice from the City regarding the filing of a claim. The City’s website directs payers to use the form for claiming a refund of an overpayment, and to file it with the City’s Office of Finance. City personnel, however, advise payers to use the form for claiming damages, and to file it with the City Clerk’s office.
The safest approach is to file both forms. That way the City cannot say you filed the wrong form. It is important that you file these forms within one year of the date the tax is paid. We don’t know when the case will be concluded, but as long as you file claims within one year, you will have established yourself as eligible for a refund.
You will likely receive a letter denying your claim and notifying you of a six month deadline to file a case in court. Click here to see a sample letter you may send to the City Attorney seeking to toll the six month deadline for filing a court case. We strongly recommend engaging an attorney for this purpose.
Click below for the City of Los Angeles Claim Forms:
https://clerk.lacity.gov/clerk-services/cps/file-claim
https://finance.lacity.gov/sites/g/files/wph1721/files/2021-04/refundclaim%20%281%29.pdf
FILE THESE CLAIM FORMS WITHIN ONE YEAR AFTER PAYING THE TAX (We recommend doing so immediately after paying the tax).
Here are the instructions for submitting each form:
For the Claim for Damages form: Go to https://clerk.lacity.gov/clerk-services/cps/file-claim and follow the online submission instructions.
Or call 213-978-1133 to obtain a paper form, then mail it to:
Los Angeles City Clerk Claims Department,
200 North Spring Street, Room 395, City Hall, Los Angeles, California 90012
For the Claim for Refund Application: Go to https://finance.lacity.gov/sites/g/files/wph1721/files/2021-04/refundclaim%20%281%29.pdf, print the form and mail it to:
Office of Finance, Refund Processing
P.O. Box 53200, Los Angeles, CA 90053-0200