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1. Faq
2. Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ
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   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 limits for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 but under $10,600,000 will be examined a 4% tax and deals $10,600,000 and up will be assessed a 5.5% tax.
   
   - Link to United to House LA (ULA) Dashboard (Los Angeles Housing Department).
   - Link to Source Data
   
   
   How typically is the City's genuine residential or commercial property transfer tax applied?
   
   The City's real residential or commercial property transfer tax applies on all files that communicate real residential or commercial property within the City, unlike residential or commercial property taxes which happen annually. The real residential or commercial property transfer tax is an excise tax on the opportunity of offering a real residential or commercial property interest, not a tax on the residential or commercial property itself, and is computed on the consideration or worth of the real residential or commercial property interest communicated.
   
   Does the a real residential or commercial property transfer tax aside from the unique tax enforced under Measure ULA?
   
   Yes, the City imposes a real residential or commercial property transfer tax on all documents that communicate real residential or commercial property within the City. The present tax (" Base Tax") is calculated based upon the factor to consider or worth of the real residential or commercial property interest communicated at a rate of 0.45%. The special tax under Measure ULA (" ULA Tax") enforces an additional tax on top of the Base Tax.
   
   What is Measure ULA and how does it work?
   
   Measure ULA developed the ULA Tax to money budget friendly housing projects and provide resources to occupants at danger of homelessness. The ULA Tax is troubled all files that communicate genuine residential or commercial property within the City of Los Angeles when the consideration or worth of the real residential or commercial property interest conveyed goes beyond a limit of five million dollars, or is ten million dollars or greater, respectively.
   
   What are the rate elements of the Base Tax and the ULA Tax under the City's genuine residential or commercial property transfer tax?
   
   The rate parts 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 communicated over $5,150,000, but 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 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:.
   
3. 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 conveyed is not divisible by $500 will be rounded up to the nearest $500 for the computation of the Base Tax. This does not apply to the ULA Rate computations, which are percentage-based.
   
   When did the ULA Tax enter into result?
   
   The ULA Tax is relevant to certified conveyances of genuine residential or commercial property interests that take place on or after April 1, 2023.
   
   How will the City use the April 1 efficient date of the ULA Tax?
   
   The City's procedure for applying the ULA Tax is designed on the ownership change rules under California Board of Equalization residential or commercial property tax guideline 462.260 for all files subject to the City's real residential or commercial property transfer tax. If a change of ownership took place before April 1 but is received by the county for tape-recording on or after April 1, 2023, the taxpayer will need to supply proof of the real deal date to show that it actually happened before the April 1, 2023 efficient date of the ULA Tax.
   
   Will the value limits under the ULA Tax be changed each year?
   
   Consistent with the Measure ULA, the worth limits of when to use the ULA Tax and its corresponding rates are adjusted yearly based upon the Bureau of Labor Statistics Chained Consumer Price Index.
   
   How will the City's real residential or commercial property transfer tax be used to residential or commercial properties that are positioned partly within the borders of the City?
   
   The real residential or commercial property transfer tax will be applied in proportion to the worth of the genuine residential or commercial property interest that was transferred within the borders of the City. If an assessment of the real residential or commercial property interest isn't available, the genuine residential or commercial property transfer tax ought to be applied based upon the square video footage of the residential or commercial property within the boundaries of the City, as a proportion of the overall factor to consider or worth of the real residential or commercial property interest communicated.
   
   How will the City deal with over payments or under payments of the real residential or commercial property transfer tax?
   
   If the City, through its compliance procedure, identifies a possible over payment or under payment, the City will alert the celebrations to the transaction of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will require to file an ask 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 a billing for the unsettled balance.
   
   Are there any exemptions for the ULA Tax?
   
   Yes, Measure ULA does provide exemptions for the ULA Tax. The ULA Tax will be not apply on files that communicate genuine residential or commercial property within the City of Los Angeles if the transferee is described 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 economical housing development and/or affordable housing residential or commercial property management experience.
   - A Community Land Trust, or Limited-Equity Housing Cooperative that has a history of inexpensive housing advancement and/or affordable housing residential or commercial property management experience.
   - A minimal collaboration or restricted liability business in which an acknowledged 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative is a basic partner or handling member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of affordable housing development and/or inexpensive housing residential or commercial property management experience, or such restricted partnership or restricted liability company consists of a partner or member, respectively, that has a history of inexpensive housing development and/or budget-friendly housing residential or commercial property management experience.
   - A community land trust or limited-equity housing cooperative partnering with an experienced non-profit organization.
   - A neighborhood land trust or limited-equity housing cooperative that does not show a history of economical housing advancement and/ or economical housing residential or commercial property management experience which records a price 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 designation letter at least 10 years prior to the deal and has possessions of less than $1 billion.
   - The United States or any agency or instrumentality thereof, any state or territory, or political neighborhood thereof, or any other federal, state or regional public company or public entity.
   - Any entity or firm 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 local, state, or federal laws and regulations.
   The Office of Finance administers ask for ULA tax exemptions under LAMC Section 21.9.15. To ask for a determination of an entity's exemption from the ULA under 21.9.15( a), please send the following files and details 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.
   - Latest Form 990 or newest audited monetary statements.
   Once the suitable documentation has been supplied and a decision of exemption has been made, the Office of Finance will provide a letter certifying that transactions where the entity is the buyer/transferee are exempt from the tax. The letter benefits one year from the date of the letter.
   
   If a transaction has currently taken place and the tax was paid, however the buyer consequently believes it gets approved for an exemption, they will require to submit a refund claim utilizing the form kept in mind above.
   
   Is the same measure utilized to identify the Base Tax and the ULA Tax?
   
   For the Base Tax, it is computed based on net worth 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 computed based upon gross worth (including the worth of any lien or encumbrance remaining thereon at the time of sale.)
   
   If the purchaser is assuming the seller's loan, is the assumed loan quantity omitted from the worth of the residential or commercial property communicated?
   
   For the Base Tax, it is calculated based on net value (exclusive of the assumed loan quantity.) For the ULA Tax, it is calculated based upon gross value (consisting of the presumed loan quantity.)
   
   If you have any questions relating to 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
   
   Client Service 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.
   
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   ( 213) 978-1548 Attn: Special Desk Unit
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