A court fight is looming between landlords and housing advocates over a new property transfer tax aimed at CRE transactions in Los Angeles.
The property transfer tax, known as Measure ULA, approved by city voters in November and scheduled to take effect in April, will add a 4% tax on real estate deals above $5M, with the rate increasing to 5.5% on deals above $10M. The new transfer tax would be added to LA's existing transfer tax of 0.45%
The Measure ULA ballot initiative—which was approved by a 58% to 42% margin of city voters—specifies that revenue generated by the new transfer tax will go directly into a new House LA Fund that will "allocate revenue to projects that address housing availability at certain income thresholds and homelessness prevention."
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