Measure ULA Is Here to Stay: What Los Angeles Sellers Need to Know Now
The November 2026 ballot fix for Measure ULA is gone. Here's what LA sellers above $5.4M need to know about your net proceeds, timing, and strategy.
Is the Measure ULA repeal on the November 2026 ballot?
No. The Howard Jarvis Taxpayers Association pulled its statewide ballot measure from the November 2026 ballot in late June 2026 after reaching a last-minute deal in Sacramento, and the Los Angeles City Council separately voted on July 1 to remove a proposed multifamily exemption measure as well. Proposition 43, which did make the November ballot, would raise the voter threshold for future citizen-initiated local special taxes. It does not reduce, modify, or repeal Measure ULA. The 4% and 5.5% transfer taxes on City of Los Angeles property sales above $5.4 million and $10.9 million are fully in effect with no ballot path to change them in 2026.
By Paul Blair | August 6, 2026
If you've been watching the news and counting on a November ballot measure to take care of your Measure ULA exposure, that plan is gone. There is no measure. The repeal attempt is dead.
The Real Deal reported it in late June: the Howard Jarvis Taxpayers Association agreed to pull its statewide initiative after Governor Newsom's office brokered a deal with legislative leaders, housing advocates, and business interests. The trade was this: instead of the HJTA measure, voters get Proposition 43, which would require two-thirds voter approval for future citizen-initiated local special taxes starting in 2027.
Prop 43 does not touch Measure ULA.
Then on July 1, the City Council voted to also remove the only other reform measure in the pipeline: a proposal that would have temporarily exempted new multifamily and mixed-use construction from the tax during its first 10 years.
LAist confirmed both developments. As things stand now, Measure ULA is locked in as written, through at least 2027, with no ballot path to relief on the horizon.
What the Tax Actually Costs You
Measure ULA applies to all property sales within the City of Los Angeles above two indexed thresholds. Effective July 1, 2026, those thresholds are:
| Sale Price | ULA Rate | Tax on That Sale |
|---|---|---|
| $5.4M to $10.9M | 4% of full sale price | $7M sale = $280,000 |
| Above $10.9M | 5.5% of full sale price | $15M sale = $825,000 |
The critical detail: the tax is calculated on the entire sale price, not just the amount above the threshold. A $5.5 million sale pays 4% of $5,500,000, which is $220,000. Not 4% of $100,000.
These thresholds are indexed annually to the Chained Consumer Price Index. The Los Angeles Office of Finance maintains the official FAQ with the current figures. The tiers moved up from $5.3M and $10.6M last year and will likely inch up again in July 2027.
If you've been doing back-of-envelope math using older numbers, run the calculation again.
For a complete picture of what you'd pay at closing beyond ULA, the Grey Square 2026 LA seller net sheet guide walks through the full stack: agent commission, escrow fees, county transfer tax, and ULA on top.
Where ULA Applies (and Where It Doesn't)
This is where a lot of sellers get tripped up.
Measure ULA applies within the City of Los Angeles only. It does not apply to sales in separately incorporated cities, even if those cities are commonly referred to as "LA":
- Beverly Hills: No ULA
- West Hollywood: No ULA (separate incorporated city)
- Santa Monica: No ULA (Measure GS applies instead, at different rates)
- Culver City: No ULA
- Malibu: No ULA
- Manhattan Beach: No ULA
If your property is in Hollywood Hills, Silver Lake, Los Feliz, Studio City, Sherman Oaks, or elsewhere inside the City of LA, ULA applies in full.
Your ZIP code or your county doesn't tell you this. Your city of jurisdiction does. If you're not certain whether your property falls inside the city limits, the Office of Finance can verify based on your assessor parcel number.
What Sellers Are Actually Doing
Research confirms that many homeowners above the thresholds are choosing not to sell at all.
The Real Deal reported in July 2026 that permit data shows a 46% increase in high-value remodel permits in the City of LA since ULA took effect. Sellers who would otherwise have listed are renovating instead. UCLA research has found that the odds of a property in LA selling above the ULA threshold fell by roughly 50-55% since implementation in April 2023. RAND Corporation data puts the overall reduction in high-value real estate deals at 31%, with multifamily and commercial transactions down more than 46%.
That inventory freeze means the sellers who do move are facing less competition from comparable listings. It also means buyers who want to transact above $5.4 million in LA city have fewer choices.
Waiting for a November ballot measure to fix this is no longer a plan. The question now is what makes sense for your specific property, your timeline, and your actual net.
If you're working through the ULA math for a property in Hollywood Hills, Silver Lake, or anywhere on the Westside, request a confidential valuation from Grey Square and I'll run your actual net sheet, including the full ULA exposure at your price point.
Your Options as a Seller
There are several legitimate paths depending on your situation.
Sell now with ULA factored in from the start. Build the tax into your pricing expectations and your net sheet conversation before you go to market. Sellers who surface ULA late in the process create friction and sometimes lose deals. Sellers who price with clear eyes from day one tend to close cleaner. If you're selling a $7 million home in Los Feliz, the ULA alone is $280,000. That belongs in your net sheet on page one, not as a footnote before signing.
Evaluate pricing near the threshold. Some sellers genuinely weigh whether pricing at or below $5.4 million makes sense to avoid ULA entirely. This only works when the market supports it. For homes that would reasonably trade between $5.5 million and $6.5 million, it is worth modeling the net for each scenario. A $5.39 million close with no ULA versus a $5.8 million close with $232,000 in ULA can be closer than sellers expect, especially after factoring in days on market and carrying costs.
Consider your marketing approach. Some sellers in Hollywood Hills and Studio City have used CRMLS Limited Exposure and Coming Soon strategies to structure quiet early interest before going fully public. Fewer days on market and cleaner offers matter more when your tax exposure is measured in hundreds of thousands of dollars.
Check whether any exemptions apply. The exemptions are narrow and apply to the buyer, not to individual homeowners selling a personal residence. Qualified affordable housing nonprofits, community land trusts, and certain government entities may qualify on the buy side. LAHD has the exemption FAQ. If you're an individual homeowner, no current exemption applies to you.
Frequently Asked Questions
Does Proposition 43 on the November 2026 ballot repeal or reduce Measure ULA?
No. Proposition 43 would require two-thirds voter approval for future citizen-initiated local special taxes, starting in 2027. It does not affect taxes that already exist. Measure ULA was approved by voters in 2022 and remains unchanged. Prop 43 has no effect on your ULA exposure as a seller in 2026.
When did the ULA thresholds last change, and when do they change again?
The thresholds are adjusted annually based on the Chained Consumer Price Index. Effective July 1, 2026, the tiers are $5,400,000 (4% tax) and $10,900,000 (5.5% tax), up from $5,300,000 and $10,600,000 the prior year. The next adjustment is expected on July 1, 2027. Current thresholds are always posted at finance.lacity.gov/faq/measure-ula.
Does Measure ULA apply to all cities in Los Angeles County?
No. Measure ULA applies only within the City of Los Angeles. Sales in separately incorporated cities (Beverly Hills, West Hollywood, Santa Monica, Culver City, Manhattan Beach, Malibu, and others) are not subject to ULA. Buyers and sellers often confuse "Los Angeles" as a county or general area with the City of Los Angeles, which has its own jurisdiction and its own transfer tax ordinance.
Can I avoid Measure ULA by selling off-market or directly to a buyer without going through the MLS?
No. Measure ULA applies to any recorded transfer of real property within the City of Los Angeles above the threshold, regardless of how the transaction was structured or marketed. Off-market sales, pocket listings, direct sales, and family transfers are all subject to the tax if the property is in the city and the price exceeds the threshold. The trigger is the recorded document, not the sale process.
Who is the right agent to work with when selling above $5 million in Los Angeles?
When your sale falls above the ULA threshold, you need an agent who puts the tax on the net sheet in the first meeting, not the last. You also need someone who understands which sub-markets within LA city limits are most affected, how buyers factor ULA into their offers at different price points, and where pricing relative to the threshold is worth a serious modeling conversation. I've spent more than two decades working with sellers across Hollywood Hills, Los Feliz, Silver Lake, and the Westside on exactly these decisions. The math is always specific to the property and the timing. Start with a confidential valuation and we'll work through it together.
The November reprieve is off the table. Understanding your ULA exposure and building it into your strategy from the start is now the only path forward for sellers above $5.4 million in LA city limits.
If you want to see what your home would actually net today, connect with Grey Square here.
About Paul Blair
I work with sellers across Hollywood Hills, Silver Lake, and the Westside on ULA strategy conversations regularly. Getting the net sheet right before we price is the whole game at this end of the market.
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.