Los Angeles Mayor Karen Bass Considers Suspending Measure ULA
Mayor Karen Bass is considering a temporary pause on Measure ULA.
The tax, approved in 2022, adds a 4% fee to property sales over $5 million and 5.5% over $10 million to fund homelessness and housing programs.
However, the measure has raised significantly less revenue than anticipated, prompting renewed discussions about its impact on the real estate market.
What You Need to Know
Mayor Bass is checking if the city can pause Measure ULA without voter approval.
The measure was expected to raise $1.1 billion a year but brought in only $300 million in its first year.
These high-value sales make up nearly 40% of the city's property tax revenue.
Experts disagree on whether city leaders can override a voter-approved measure without changing the City Charter.
The mayor's office has not provided any other details on this possible suspension.
How It Impacts You
Key takeaways for the CRE industry:
- The tax slowed high-value sales, so pausing or ending it could boost investment and deals.
- If the city suspends the tax without a vote, it could set a precedent for future real estate taxes.
- This potential change could lead to increased market activity, offering new opportunities for property managers and investors.
Stay Connected
Stay connected with us on BOMA on the Frontline for updates on Measure ULA. As its continuation or removal could heavily impact property values, leasing, and the market in LA.
