Councilmember Ysabel Jurado to chair an ad hoc committee to determine if the $1.1 billion tax needs exemptions.
Councilmember Ysabel Jurado will chair a newly formed ad hoc committee tasked with evaluating potential changes to Measure ULA, the city’s controversial “mansion tax,” her office announced Thursday.
Joining Jurado on the three-person panel are Councilmembers John Lee and Imelda Padilla. The group has been mandated to review the tax’s efficacy and provide recommendations for a possible November ballot measure. To meet city deadlines, the committee must convene by March 27 and will dissolve on April 30.
“Ensuring ULA is delivering real results” stands as the primary mission for the committee, Jurado said in a statement.
The One, $126M megamansion. Photo Credit: Christie’s International Real Estate.
Passed by voters in 2022, Measure ULA mandates a 4% tax on real estate transfers exceeding $5.3 million, with the rate climbing to 5.5% for deals over $10.6 million. While the funds are earmarked for affordable housing and homelessness prevention, critics within City Hall and the real estate industry have warned of “unintended consequences” regarding multifamily development.
Councilmember Nithya Raman, currently campaigning for mayor, shocked observers when she asked for a 15-year ULA exemption for new commercial and residential construction to spur growth. Conversely, Jurado and Councilmember Eunisses Hernandez have called for a comprehensive study to ensure that any proposed amendments do not significantly deplete the city’s housing revenue.
Data from the Los Angeles Housing Department shows the tax has generated approximately $1.1 billion to date. Single-family home sales account for the largest share of that revenue at $463.4 million, followed by commercial transactions at $406.1 million.