L.A. City Council shelves mansion tax ballot plan for apartments; Measure ULA July 1

Los Angeles City Council on July 1 voted to hold off on a ballot plan that would have given a 10-year exemption from the city’s “mansion tax” (Measure ULA) for newly constructed multi-family and mixed-residential buildings.

In a 13-1 vote, council decided to “note and file” the proposal, according to MyNewsLA. The City Clerk’s record for the July 1 meeting shows a 13-1-1 vote, with Councilwoman Katy Yaroslavsky casting the “no” vote and Councilman Curren Price absent.

The action does not repeal or pause Measure ULA itself.

Separately, the Los Angeles Office of Finance says updated Measure ULA transfer-tax thresholds apply for transactions closing after June 30, 2026—meaning beginning July 1.

What Measure ULA is

Measure ULA is part of Los Angeles’ real property transfer tax system. The Office of Finance describes it as an excise tax tied to documents that convey real property within the city (not an annual property tax), calculated based on the consideration or value of the real property interest conveyed.

The Office of Finance also says the city’s base transfer tax applies to covered transactions, and the Measure ULA tax is an additional layer when the value of the property conveyed clears the relevant thresholds.

The ballot measure the council set aside

MyNewsLA reports the council scrapped the plan to exempt newly constructed multi-family and mixed-residential buildings from Measure ULA for a 10-year period. LAist similarly described the exemption proposal as a reform effort that Yaroslavsky had been pushing to put before voters.

What changes anyway on July 1: new Measure ULA thresholds for some deals

Even with the 10-year exemption plan held back, the Office of Finance says new Measure ULA thresholds apply for qualifying transactions that close after June 30, 2026.

• For transactions closing after June 30, 2026, the new thresholds are $5,400,000 and $10,900,000.
• Transactions with values over $5,400,000 but under $10,900,000 are assessed a 4% ULA tax rate.
• Transactions with values $10,900,000 or more are assessed a 5.5% ULA tax rate.

Because this transfer tax is driven by the value used for the conveyance and the closing date, buyers, sellers, and developers may want to confirm how the updated thresholds apply to their specific transaction timing—especially for deals with closing dates around July 1.

What to watch next

MyNewsLA reports the July 1 discussion on Measure ULA also included directions to improve implementation, and to explore additional approaches—such as a possible pilot tax credit program and changes aimed at strengthening reporting and oversight.

Sources

• Los Angeles City Clerk — Council File 26-0782 (Measure ULA ballot-measure action/vote record)
• Los Angeles Office of Finance — Measure ULA FAQ (thresholds/rates effective for transactions closing after June 30, 2026)
• MyNewsLA — ‘Council Holds Off On Measure ULA Exemption for New Housing’ (July 1, 2026)
• LAist — ‘Mansion tax’ reform dies (Measure ULA reform ballot-measure context)