LA voters passed Measure ULA (only 512k to 374k votes) in November 2022 which imposed a new “Homelessness and Housing Solutions” transfer tax on all real estate sales transactions in the city over $5 million. Though it is commonly referred to as the “mansion tax,” it applies to all residential, commercial, and land transactions.
The Initiative was proposed by labor unions, among others, seeking to extract the equity from properties, comprising 4% of all gross proceeds of sale (with no deduction for indebtedness and regardless of whether money was made) for properties of over $5 million and 5.5% of all gross proceeds of sale for properties of over $10 million.
THE LATEST:
The LA real estate community has a real chance of overturning LA’s “mansion tax” (Measure ULA) in court. Motions are heard next month. Attorneys are working on the opposition papers this week and are poised to prosecute the cases aggressively this week. Law Offices of Keith M. Fromm and the Costell & Adelson Law Firm think there is a real opportunity to have this tax nullified, which could result in a refund of any ULA taxes that may be paid or have paid. The litigators need support as the cost is estimated to be $3 million.
Here are the details the legal arguments, the present status of litigation and what is needed next. To read all pages scroll down along right column of this slide show:
The City of LA and the Unions defending the tax are sparing no expense. Two cases have been brought in both federal and state court and asserting numerous claims. They did so within the 60-day deadline to file and without any assurance of being paid. Non-profits Howard Jarvis Taxpayers’ Association and AAGLA asserted only one claim and only in state court. For additional information or if you would like to speak with the attorneys, contact Jim Breslo
at 818-723-3748 or www.fightula.com.