Measure ULA Remains in Effect as Reform Efforts Shift

Los Angeles’ Measure ULA remains in effect following the June 2026 withdrawal of a statewide ballot measure that could have significantly curtailed the tax. Attention has now shifted from repeal to targeted state and local reforms that could reduce ULA’s impact on certain real estate development and investment.

Measure ULA layers an additional transfer tax on high-value real estate transactions within the City of Los Angeles. For deals closing after June 30, 2026, transfers of $5.4 million to $10.9 million carry a 4% ULA tax, rising to 5.5% at $10.9 million and above, all on top of the City’s base transfer tax. And despite its “mansion tax” nickname, ULA reaches far beyond luxury homes, sweeping in multifamily, mixed-use, commercial, industrial, and other property.

The early data tells a two-sided story. Recent studies cited by the authors point to measurable shifts in transaction activity, development economics, and housing construction since ULA’s rollout. At the same time, the tax has delivered substantial funding for affordable housing and tenant-protection programs.

With the statewide repeal threat off the table, policymakers are zeroing in on narrower fixes. On the table: a statewide cap on transfer taxes and a Los Angeles tax-credit program that would dial back ULA rates for qualifying multifamily and mixed-use projects.

Looking Ahead

Measure ULA isn’t going anywhere, but the debate around it is far from settled. With state and local changes on the horizon that could reshape the economics of key real estate projects and transactions, ULA remains a moving target that Los Angeles developers and investors should watch closely.  

For a more detailed discussion of Measure ULA’s impact and the reform proposals under consideration, read Seyfarth’s two-part series in Daily Journal, “Measure ULA Survives, but Reform Isn’t Over,” Parts One and Two.