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 will collect the tax beginning April 1, 2023.
If you pay this tax, you may file a claim for a refund within one year of the date the tax is paid (likely at the close of escrow) if we are successful in our challenge. We don’t know when the case will be concluded, but as long as you file a claim within one year, you are eligible for a refund.