LA voters will decide if Palisades homeowners get a break from city’s ‘mansion tax’

The Los Angeles City Council voted 13-1 on Tuesday to put a measure on the November ballot that will ask voters whether homes affected by the Palisades Fire should be exempt from the city’s controversial “mansion tax.”

If passed, the exemption would apply to the sale of homes damaged or destroyed by the fire. The exemption would last until early 2030, five years from the date of the fire.

This could potentially reduce the tax’s revenue up to 6% — or $32 million each year — according to a May 2026 report from the L.A. Housing Department.

How the ‘mansion tax’ works 

The “mansion tax,” officially called Measure ULA, is a tiered tax on real estate selling for $5.4 million or more. The tax, which was passed by voters in 2022, funds programs such as rental assistance, eviction defense and affordable housing construction in the city.

The measure has fierce defenders, as well as staunch critics. A statewide ballot measure sought to kill the tax before it was pulled by supporters earlier this year in exchange for a legislative deal in Sacramento.

State and local lawmakers have considered reducing the tax or exempting newly constructed apartment buildings. Their ideas have been guided by economic studies that found the tax was slowing down housing development in the city. So far, none of those reforms have mustered enough support to pass.

Where council members stand

Councilmember Eunisses Hernandez, whose district includes Highland Park, Chinatown and Westlake, previously spoke against the measure’s scope at a City Council meeting on July 1.

“Any exemption should only be for homeowners whose primary residence was destroyed, and people who genuinely need help rebuilding, not LLCs, investors or people with a portfolio of properties,” Hernandez said. “We had the opportunity to write those protections into this ordinance, and we didn’t.”

Hernandez criticized her colleagues for shooting down the post-fire eviction protections she proposed after tenants living in her district lost work as gardeners and nannies in the Pacific Palisades.

“When wealthy property owners need relief, we’re willing to bend over backwards,” she said. “But when working class people and tenants need protection, suddenly our hands are tied and the political will is not there.”

Councilmember Traci Park, who represents the Pacific Palisades, voiced support for the measure at the same meeting.

“Putting this tax on these folks who are trying to recover and reckoning with the fact that some of them just aren’t coming home, is just unspeakably cruel,” Park said. “It’s an exemption that applies in very narrow circumstances to original owners and first transactions for five years, only for residential properties. This is the least we can do as this community continues to recover.”

In Tuesday’s meeting, Hernandez cast the lone vote against placing the measure on the November ballot. Thirteen council members supported the move. Councilmember Curren Price was not present for the vote.

What happens next 

L.A. voters will have the final say on whether Palisades homeowners will be exempt from the tax. The proposal needs a simple majority of support from voters in the upcoming November general election to pass.

How to keep tabs on the L.A. City Council

The L.A. City Council tends to meet Tuesdays, Wednesdays, and Fridays. Meetings typically start at 10 a.m.

Here’s how you can follow along:

• Attend in person: The council typically meets at City Hall, Council Chambers, 200 N. Spring St., Los Angeles
• Watch the live broadcast
• Here’s how to submit a comment or contact the council