Measure ULA Isn't Going Anywhere: Why the November 2026 Repeal Effort Died

Update, July 2026: The statewide ballot measure described in the original version of this post did not qualify for the November 2026 ballot. The Howard Jarvis Taxpayers Association pulled its signature drive before certification. Separately, the Los Angeles City Council voted 14-0 on July 6, 2026 to shelve its own local reform proposal. There is no active path to repealing or reducing Measure ULA in 2026. The tax remains in full effect at the current thresholds below, and sellers above them should plan around it rather than time a sale around a repeal that is not happening.

The rest of this post explains what Measure ULA actually costs at today's thresholds, why the repeal effort collapsed, and what that means if you're weighing a sale above the ULA line.

What Measure ULA Actually Costs

Measure ULA is a Los Angeles City transfer tax that applies when a property sells above certain thresholds. It does not apply to Beverly Hills, Santa Monica, Culver City, or unincorporated LA County, only to properties within the incorporated City of Los Angeles.

The thresholds adjust every July 1 based on the Bureau of Labor Statistics Chained Consumer Price Index. Effective July 1, 2026, the tiers are:

• Tier 1: 4 percent on sales between $5,400,000 and $10,899,999
• Tier 2: 5.5 percent on sales of $10,900,000 and above

These are up from the 2025 thresholds of $5,300,000 and $10,600,000.

What That Looks Like at Different Price Points

• $8 million home in Bel Air: $8M x 4% = $320,000 in ULA.
• $15 million estate in LA City (Bel Air, Holmby Hills, the Bird Streets): $15M x 5.5% = $825,000 in ULA. Beverly Hills is an independent municipality, so this only applies to LA City parcels.
• $5.5 million home in Studio City or Sherman Oaks: $5.5M x 4% = $220,000 in ULA.

There is no version of the tax below these rates available to sellers right now, and no ballot measure or council action currently pending that would change that.

Why the Repeal Effort Failed

The Howard Jarvis Taxpayers Association had been fighting Measure ULA in court since 2023, arguing it violated the Equal Protection Clause. The district court ruled against them, and the California Court of Appeal affirmed. With the legal path closed, HJTA moved to a ballot strategy: the Local Taxpayer Protection Act, which would have capped every California municipal real estate transfer tax at 0.05 percent statewide, effectively gutting ULA along with similar taxes in other cities.

That measure needed to clear signature qualification to reach the November 3, 2026 ballot. It didn't. HJTA pulled the drive before certification, citing the cost and difficulty of a statewide signature campaign against a well-funded opposition. Mayor Bass, the City Council majority, affordable housing advocates, and labor groups had all organized to defend a tax that has collected over $1 billion since 2023.

Separately, and on a smaller scale, the LA City Council had been considering its own local reform: a measure that would have exempted new apartment construction (within 10 years of completion) from ULA, aimed at addressing housing-supply criticism of the tax. On July 6, 2026, the Council voted 14-0 to shelve that proposal rather than put it on the November ballot.

With both paths closed, there is no active mechanism to change Measure ULA in 2026.

What This Means If You're Selling Above the Threshold

Plan around the tax as a fixed cost, not a variable one. If your property is above $5.4 million within LA City, ULA is part of your net proceeds calculation, the same as commission or closing costs. There is no repeal on the horizon to price in.

Don't wait for a discount that isn't coming. Some listings priced ULA-contingent language into purchase agreements earlier this year, structuring different prices depending on whether a repeal passed. That pricing logic no longer applies. If you're negotiating a contract now, there's no ballot outcome to contingency around.

The July 1 threshold reset still matters at the margin. If your home is priced close to $5.4 million or $10.9 million, which side of a threshold you land on at closing still meaningfully changes your tax bill. That's a real, current consideration, separate from the now-closed repeal question.

Beverly Hills and Santa Monica remain outside ULA's reach. If your property sits in either of those independent municipalities, or in unincorporated LA County, this tax was never yours to plan around in the first place.

If you're weighing a sale above the ULA threshold, the starting point is the same as it's always been: know your exact number, and have an honest conversation about your timeline. What's changed is that "wait and see" is no longer one of the variables.

Get a current estimate of your home's value: greysq.com/home-value or reach out directly to talk through the numbers for your specific property.

Frequently Asked Questions

Is Measure ULA still in effect?

Yes, at the current thresholds: 4 percent on LA City sales between $5,400,000 and $10,899,999, and 5.5 percent at $10,900,000 and above. There is no pending repeal or reform that changes this.

Why did the statewide repeal measure fail to reach the ballot?

The Howard Jarvis Taxpayers Association pulled its signature drive for the Local Taxpayer Protection Act before it qualified for the November 3, 2026 ballot. A well-funded opposition campaign, backed by the mayor's office, the City Council majority, and labor and housing groups, made qualification and passage difficult enough that HJTA chose not to proceed.

What happened to the local reform proposal?

The Los Angeles City Council considered a narrower measure exempting new apartment construction from ULA and voted 14-0 on July 6, 2026 to shelve it rather than place it on the ballot.

What are the current Measure ULA thresholds for 2026?

Effective July 1, 2026, the Tier 1 threshold is $5,400,000 (taxed at 4 percent) and the Tier 2 threshold is $10,900,000 (taxed at 5.5 percent). These replaced the 2025 thresholds of $5,300,000 and $10,600,000, and adjust again next July based on the BLS Chained Consumer Price Index.

Does Measure ULA apply to all properties in Los Angeles, or only within the city?

Only within the incorporated boundaries of the City of Los Angeles. It does not apply to Beverly Hills, Santa Monica, Culver City, or unincorporated LA County. If you're unsure whether your property is within city limits, your escrow officer or title company can confirm.

Could a new repeal effort come back in a future election cycle?

It's possible, but nothing is currently organized or pending. HJTA's litigation path is closed, and its 2026 ballot strategy didn't reach qualification. Any future attempt would need to restart the signature and campaign process from the beginning.

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.