Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ
Received a Notification of Non-Compliance?
Renewal Deadlines, Forms and Online Services
Fire Permit
Police Permits
Tobacco Permits
About the Business Tax
Fiscal vs. Fiscal year Reporting
Know Your Rates
Lifeline - Utility Users Tax Exemption for Seniors and Individuals with Disabilities
Tax Incentives and Exemptions
Business Regulation in Los Angeles
City Clerk's Ruling
Legal Action for Non-Compliance
Required Hazardous Materials Reporting
Voluntary Disclosure Program for Unregistered Businesses
Whistleblower Program
Assessment Review General Information
Board of Review
Requesting a Hearing
Settlement Bureau
AB 63/SB 1146 - Tax Discovery
RMS Tax Discovery
Debt Collection Agency Information
Offer in Compromise Info and FAQ
Changing or Closing Your Business
1. Home
2. Faq
3. Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ
Real Residential Or Commercial Property Transfer Tax and Measure ULA FAQ
Sales Price Calculate tax
Tax Due
Effective for transactions closing after June 30, 2025, the new thresholds for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 but under $10,600,000 will be evaluated a 4% tax and deals $10,600,000 and up will be evaluated a 5.5% tax.
- Link to United to House LA (ULA) Dashboard (Los Angeles Housing Department).
- Link to Source Data
How often is the City's real residential or commercial property transfer tax used?
The City's genuine residential or commercial property transfer tax applies on all documents that residential or commercial property within the City, unlike residential or commercial property taxes which happen each year. The genuine residential or commercial property transfer tax is an excise tax on the privilege of offering a real residential or commercial property interest, not a tax on the residential or commercial property itself, and is calculated on the consideration or worth of the genuine residential or commercial property interest conveyed.
Does the City enforce a real residential or commercial property transfer tax besides the unique tax enforced under Measure ULA?
Yes, the City enforces a genuine residential or commercial property transfer tax on all files that convey real residential or commercial property within the City. Today tax (" Base Tax") is calculated based on the factor to consider or value of the genuine residential or commercial property interest communicated at a rate of 0.45%. The special tax under Measure ULA (" ULA Tax") imposes an additional tax on top of the Base Tax.
What is Measure ULA and how does it work?
Measure ULA established the ULA Tax to fund economical housing projects and offer resources to occupants at threat of homelessness. The ULA Tax is enforced on all documents that convey genuine residential or commercial property within the City of Los Angeles when the factor to consider or value of the real residential or commercial property interest communicated goes beyond a threshold of 5 million dollars, or is 10 million dollars or greater, respectively.
What are the rate elements of the Base Tax and the ULA Tax under the City's real residential or commercial property transfer tax?
The rate components are as follows:
- The Base Tax rate of $2.25 per $500 or part thereof (" Base Rate").
- The ULA Tax rates of, 1) 4% for residential or commercial properties conveyed over $5,150,000, however under $10,300,000 and 2) 5.5% for residential or commercial properties conveyed at $10,300,000 or more (" ULA Rates").
- The specific language for the brand-new rates can be found here: https://clkrep.lacity.org/onlinedocs/2022/22-1100-S2_ord_187692_1-1-23.pdf.
- The chart below is summary of the rates:.
* Note: the City's Base Rate is $2.25 for every single $500 or fractional part thereof. A transfer in which the value of the residential or commercial property communicated is not divisible by $500 will be assembled to the closest $500 for the computation of the Base Tax. This does not apply to the ULA Rate calculations, which are percentage-based.
When did the ULA Tax go into effect?
The ULA Tax applies to qualified conveyances of real residential or commercial property interests that occur on or after April 1, 2023.
How will the City apply the April 1 effective date of the ULA Tax?
The City's treatment for applying the ULA Tax is designed on the ownership modification rules under California Board of Equalization residential or commercial property tax rule 462.260 for all documents based on the City's real residential or commercial property transfer tax. If a modification of ownership took place before April 1 but is gotten by the county for tape-recording on or after April 1, 2023, the taxpayer will require to supply proof of the actual deal date to reveal that it in fact happened before the April 1, 2023 effective date of the ULA Tax.
Will the worth limits under the ULA Tax be changed every year?
Consistent with the Measure ULA, the worth thresholds of when to apply the ULA Tax and its corresponding rates are changed every year based upon the Bureau of Labor Statistics Chained Consumer Price Index.
How will the City's real residential or commercial property transfer tax be applied to residential or commercial properties that are located partially within the borders of the City?
The real residential or commercial property transfer tax will be used in percentage to the value of the genuine residential or commercial property interest that was transferred within the limits of the City. If an evaluation of the genuine residential or commercial property interest isn't available, the real residential or commercial property transfer tax should be used based on the square video footage of the residential or commercial property within the limits of the City, as a proportion of the total consideration or value of the genuine residential or commercial property interest communicated.
How will the City handle over payments or under payments of the real residential or commercial property transfer tax?
If the City, through its compliance process, recognizes a possible over payment or under payment, the City will inform the celebrations to the deal of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will require to file a request for refund from the Office of Finance. The Claim for Refund Application can be found here:
https://finance.lacity.gov/sites/g/files/wph1721/files/2021-04/refundclaim%20%281%29.pdf
In case of underpayment, the taxpayer will get an invoice for the unsettled balance.
Are there any exemptions for the ULA Tax?
Yes, Measure ULA does supply exemptions for the ULA Tax. The ULA Tax will be not apply on documents that convey real residential or commercial property within the City of Los Angeles if the transferee is explained under freshly added areas 21.9.14 and 21.9.15 of the Los Angeles Municipal Code (" LAMC"). The transferee descriptions are as follows:
Qualified Affordable Housing Organizations under LAMC Section 21.9.14
- A non-profit entity within Internal Revenue Code section 501( c)( 3) with a history of inexpensive housing advancement and/or economical housing residential or commercial property management experience.
- A Neighborhood Land Trust, or Limited-Equity Housing Cooperative that has a history of economical housing advancement and/or inexpensive housing residential or commercial property management experience.
- A restricted collaboration or limited liability business where a recognized 501( c)( 3) not-for-profit corporation, neighborhood land trust, or limited-equity housing cooperative is a general partner or managing member and such 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative has a history of budget friendly housing development and/or budget-friendly housing residential or commercial property management experience, or such limited partnership or restricted liability company consists of a partner or member, respectively, that has a history of cost effective housing development and/or inexpensive housing residential or commercial property management experience.
- A community land trust or limited-equity housing cooperative partnering with a skilled non-profit organization.
- A community land trust or limited-equity housing cooperative that does not demonstrate a history of economical housing advancement and/ or cost effective housing residential or commercial property management experience which tape-records an affordability covenant, constant with area 22.618.3( d)( 1 )( i). b. of the Los Angeles Administrative Code, on the residential or commercial property at the time of the acquisition.
The Los Angeles Housing Department administers ask for ULA tax exemptions under LAMC Section 21.9.14.
Other Exemptions under LAMC Section 21.9.15
- An acknowledged 501( c)( 3) entity which got its initial IRS decision letter classification letter a minimum of 10 years prior to the deal and has assets of less than $1 billion.
- The United States or any company or instrumentality thereof, any state or area, or political subdivision thereof, or any other federal, state or local public company or public entity.
- Any entity or agency exempt from the City's taxation power under the California or U.S. Constitutions.
- All other transactions which are exempt from the base Real Residential or commercial property Transfer Tax per regional, state, or federal laws and guidelines.
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To ask for a decision of an entity's exemption from the ULA under 21.9.15( a), please submit the following files and information to finance.ula@lacity.org.
- Power of Attorney.
- Legal name.
- Mailing address.
- IRS 501 (c)( 3) decision letter revealing the effective date of the exemption status.
- Most recent Form 990 or most current audited financial declarations.
Once the appropriate paperwork has been supplied and a decision of exemption has been made, the Office of Finance will provide a letter licensing that deals where the entity is the buyer/transferee are exempt from the tax. The letter is great for one year from the date of the letter.
If a transaction has actually currently taken place and the tax was paid, but the purchaser subsequently thinks it receives an exemption, they will require to submit a refund claim using the type kept in mind above.
Is the exact same measure utilized to identify the Base Tax and the ULA Tax?
For the Base Tax, it is calculated based on net value of the residential or commercial property communicated (exclusive of the value of any lien or encumbrance staying thereon at the time of sale.) For the ULA Tax, it is determined based on gross value (including the worth of any lien or encumbrance staying thereon at the time of sale.)
If the buyer is assuming the seller's loan, is the assumed loan amount excluded from the value of the residential or commercial property conveyed?
For the Base Tax, it is computed based on net value (exclusive of the presumed loan amount.) For the ULA Tax, it is determined based on gross worth (including the presumed loan quantity.)
If you have any questions concerning the ULA Tax, please contact finance.ula@lacity.org or (213) 635-7277.
Office of Finance
Office of Finance Special Desk Unit
200 North Spring Street, Room 101
Los Angeles, CA 90012
Customer Care Center (844) 663-4411
Phone Hours:
Monday, Tuesday, Wednesday and Thursday: 9:00 a.m. - 3:00 p.m.
Friday: 9:00 a.m. - 2:00 p.m.
Fax
( 213) 978-1548 Attn: Special Desk Unit
E-mail
Finance.CustomerService@lacity.org!.?.! Office Locations The Office of Finance has three locations across the City
of Los Angeles to best service your needs along with a brand-new virtual public counter. Click on this link for additional information. Popular Online Services Register Business Tax Registration Certificate( BTRC). Non-Profit Exempt Business Tax
Registration
Certificate Renew Annual Business Tax Renewal.
Annual Police Alarm Permit. Annual Tobacco Permit. Monthly Commercial Cannabis Tax
Renewal. Monthly Parking Occupancy Tax. Monthly Transient Occupancy Tax Pay Online Bill Pay Other Services Get Paperless Statements.
Penalty Waiver Request.
Public Records Request. Refund Request
. Whistleblower Program © Copyright 2025 City of Los Angeles
. All rights booked.