In November 2022, City of Los Angeles voters approved Measure ULA, an initiative that imposes a new 4% to 5.5% transfer tax on high-value real estate transfers for special purposes related to housing.
The California Constitution (Proposition 13) prohibits real estate transfer taxes for special purposes. The Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles have filed a legal challenge to this law.
The City of Los Angeles began collecting the tax April 1, 2023.
If you pay this tax, you may file a claim for a refund within one year of the date the tax is paid. We don’t know when the case will be concluded, but as long as you file a claim within one year, you will have established yourself as eligible for a refund. You will then likely receive a letter denying your claim and notifying you of a six month deadline to file a case in court. Click here to see a sample letter you may send to the City Attorney requesting to toll the six month deadline for filing a court case. We strongly recommend engaging an attorney for this purpose.