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LA leaders decide city needs a new committee to explore ‘mansion tax’ reforms
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LA leaders decide city needs a new committee to explore ‘mansion tax’ reforms
The Los Angeles City Council voted unanimously Wednesday to set up a new committee tasked with exploring reforms to the city’s embattled Measure ULA, known to many as the “mansion tax.”
Topline:
The Los Angeles City Council voted unanimously Wednesday to set up a new committee tasked with exploring reforms to the city’s embattled Measure ULA, known to many as the “mansion tax.”
Tax basics: Approved by nearly 58% of city voters in 2022, Measure ULA raises funds for tenant aid and affordable housing construction by taxing real estate selling for $5.3 million or more. The tax also covers apartment buildings. Various studies have found this has led to a slowdown in housing development activity.
The backstory: Previous efforts at the state and local level to cancel or lower the tax on new apartments have fizzled. But L.A. City Council President Marqueece Harris-Dawson — who put forward the motion to establish a three-member Ad Hoc Committee on Measure ULA — said during Wednesday’s meeting that reforms still need consideration. “There are things in ULA that I frankly think were not in the spirit of the voters, like taxing the building of affordable housing,” he said.
What’s next: A spokesperson for Harris-Dawson said the members of the committee will be picked and announced in the coming weeks. The committee will be tasked with putting forward recommendations about potential reforms by April 30. Proposals could be sent back to voters for approval on the November ballot. Meanwhile, a competing campaign has turned in signatures for another potential November ballot measure seeking to throw out Measure ULA and similar taxes across the state.
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