Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ (#4) · Issues · Benito Ringrose / onshownearme

Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ

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1. Home 2. Faq 3. Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ

Real Residential Or Commercial Property Transfer Tax and Measure ULA FAQ

List prices Calculate tax

Tax Due

Effective for transactions closing after June 30, 2025, the brand-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 assessed a 4% tax and transactions $10,600,000 and up will be examined a 5.5% tax.

- Link to United to House LA (ULA) Dashboard (Los Department).
- Link to Source Data

How frequently is the City's real residential or commercial property transfer tax used?

The City's real residential or commercial property transfer tax is appropriate on all documents that communicate real residential or commercial property within the City, unlike residential or commercial property taxes which occur annually. The real residential or commercial property transfer tax is an excise tax on the privilege of selling a genuine residential or commercial property interest, not a tax on the residential or commercial property itself, and is calculated on the factor to consider or value of the real residential or commercial property interest communicated.

Does the City enforce a genuine residential or commercial property transfer tax aside from the unique tax imposed under Measure ULA?

Yes, the City imposes a real residential or commercial property transfer tax on all files that convey real residential or commercial property within the City. Today tax (" Base Tax") is computed based on the consideration or worth of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") imposes an extra tax on top of the Base Tax.

What is Measure ULA and how does it work?

Measure ULA developed the ULA Tax to fund economical housing jobs and offer resources to renters at threat of homelessness. The ULA Tax is troubled all files that communicate real residential or commercial property within the City of Los Angeles when the consideration or value of the real residential or commercial property interest conveyed surpasses a limit of 5 million dollars, or is ten million dollars or higher, respectively.

What are the rate parts of the Base Tax and the ULA Tax under the City's real 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 conveyed over $5,150,000, but under $10,300,000 and 2) 5.5% for residential or commercial properties communicated at $10,300,000 or more (" ULA Rates").
- The specific language for the brand-new rates can be discovered here: https://clkrep.lacity.org/onlinedocs/2022/22-1100-S2_ord_187692_1-1-23.pdf.
- The chart below is summary of the rates:.

Note: the City's Base Rate is $2.25 for every $500 or fractional part thereof. A transfer in which the worth of the residential or commercial property communicated is not divisible by $500 will be assembled to the nearest $500 for the estimation of the Base Tax. This does not apply to the ULA Rate estimations, which are percentage-based.

When did the ULA Tax enter into impact?

The ULA Tax applies to certified conveyances of genuine residential or commercial property interests that happen on or after April 1, 2023.

How will the City use the April 1 reliable date of the ULA Tax?

The City's treatment for using the ULA Tax is designed on the ownership modification rules under California Board of Equalization residential or commercial property tax guideline 462.260 for all files based on the City's real residential or commercial property transfer tax. If a modification of ownership occurred before April 1 however is received by the county for tape-recording on or after April 1, 2023, the taxpayer will need to offer evidence of the real deal date to show that it in fact took place before the April 1, 2023 effective date of the ULA Tax.

Will the value limits under the ULA Tax be changed annually?

Consistent with the Measure ULA, the value thresholds of when to apply the ULA Tax and its matching rates are adjusted every year based upon the Bureau of Labor Statistics Chained Consumer Price Index.

How will the City's genuine residential or commercial property transfer tax be used to residential or commercial properties that are positioned partly within the borders of the City?

The genuine residential or commercial property transfer tax will be applied in proportion to the worth of the genuine residential or commercial property interest that was moved within the borders of the City. If an evaluation of the genuine residential or commercial property interest isn't offered, the genuine residential or commercial property transfer tax need to be applied based upon the square video of the residential or commercial property within the boundaries of the City, as a percentage of the total factor to consider or worth of the genuine residential or commercial property interest communicated.

How will the City handle 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 inform the celebrations to the deal of the potential overpayment or underpayment. In cases of overpayment, taxpayers will require to file a request 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 receive an invoice for the unsettled balance.

Are there any exemptions for the ULA Tax?

Yes, Measure ULA does offer exemptions for the ULA Tax. The ULA Tax will be not apply on documents that convey real 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 advancement and/or inexpensive housing residential or commercial property management experience.
- A Neighborhood Land Trust, or Limited-Equity Housing Cooperative that has a history of budget friendly housing development and/or economical housing residential or commercial property management experience.
- A limited partnership or restricted liability business wherein a recognized 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative is a general partner or managing member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of inexpensive housing advancement and/or budget friendly housing residential or commercial property management experience, or such restricted partnership or restricted liability business consists of a partner or member, respectively, that has a history of affordable housing advancement and/or budget-friendly housing residential or commercial property management experience.
- A community land trust or limited-equity housing cooperative partnering with a knowledgeable non-profit company.
- A community land trust or limited-equity housing cooperative that does not demonstrate a history of cost effective housing development and/ or budget-friendly housing residential or commercial property management experience which tape-records an affordability covenant, consistent with section 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 demands 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 received its preliminary IRS determination letter designation letter a minimum of 10 years prior to the deal and has assets of less than $1 billion.
- The United States or any agency or instrumentality thereof, any state or area, or political neighborhood thereof, or any other federal, state or local public firm or public entity.
- Any entity or agency exempt from the City's taxation power under the California or U.S. Constitutions.
- All other deals which are exempt from the base Real Residential or commercial property Transfer Tax per regional, state, or federal laws and regulations.
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To request a decision of an entity's exemption from the ULA under 21.9.15( a), please send the following files and information to finance.ula@lacity.org.

- Power of Attorney.
- Legal name.
- Mailing address.
- IRS 501 (c)( 3) determination letter revealing the reliable date of the exemption status.
- Latest Form 990 or latest audited monetary declarations.
Once the appropriate documentation has actually been offered and a determination of exemption has been made, the Office of Finance will provide a letter licensing that transactions where the entity is the buyer/transferee are exempt from the tax. The letter is great for one year from the date of the letter.

If a transaction has currently happened and the tax was paid, but the buyer subsequently believes it certifies for an exemption, they will need to submit a refund claim using the type noted above.

Is the very same procedure utilized to figure out the Base Tax and the ULA Tax?

For the Base Tax, it is calculated based upon net value of the residential or commercial property conveyed (unique of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is determined based on gross value (consisting of the worth of any lien or encumbrance staying thereon at the time of sale.)

If the buyer is presuming the seller's loan, is the assumed loan quantity excluded from the worth of the residential or commercial property conveyed?

For the Base Tax, it is calculated based on net value (exclusive of the assumed loan amount.) For the ULA Tax, it is determined based on gross value (consisting of the assumed loan amount.)

If you have any questions concerning 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

Customer Care 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.

Fax

( 213) 978-1548 Attn: Special Desk Unit
questionsanswered.net
E-mail

Finance.CustomerService@lacity.org!.?.! Office Locations The Office of Finance has 3 places throughout the City
of Los Angeles to finest service your needs as well as a brand-new virtual public counter. Click on this link to find out more. Popular Online Services Register Business Tax Registration Certificate( BTRC). Non-Profit Exempt Business Tax
Registration
Certificate Renew Annual Business Tax Renewal. Annual Police Alarm Permit. Annual Tobacco Permit. Monthly Commercial Cannabis Tax
Renewal. Monthly Parking Occupancy Tax. Monthly Transient Occupancy Tax Pay Online Bill Pay Other Services Get Paperless Statements. Penalty Waiver Request. Public Records Request. Refund Request
. Whistleblower Program © Copyright 2025 City of Los Angeles
. All rights reserved.

Received a Notice of Non-Compliance?
 
[Renewal](https://mspdeveloper.com) Deadlines, Forms and Online Services
 
Fire Permit
 Police Permits
 Tobacco Permits
 
About the Business Tax
 Fiscal vs. Calendar Year Reporting
 Know Your Rates
 
Lifeline - Utility Users Tax Exemption for Seniors and Individuals with Disabilities
 Tax Incentives and Exemptions
 
Business Regulation in Los Angeles
 City Clerk's Ruling
 Legal Action for Non-Compliance
 Required Hazardous Materials Reporting
 Voluntary Disclosure Program for Unregistered Businesses
 Whistleblower Program
 
Assessment Review General Information
 Board of Review
 Requesting a Hearing
 Settlement Bureau
 
AB 63/SB 1146 - Tax Discovery
 RMS Tax Discovery
 
Debt Collector Information
 Offer in Compromise Info and FAQ
 
Changing or Closing Your Business
 [life123.com](https://www.life123.com/lifestyle/find-top-rated-real-estate-agents-near?ad=dirN&qo=serpIndex&o=740009&origq=real+estate)
 1. Home
2. Faq
3. Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ 
 Real Residential Or [Commercial Property](https://number1property.com) Transfer Tax and Measure ULA FAQ 
 List prices Calculate tax 
 Tax Due 
 Effective for transactions closing after June 30, 2025, the brand-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 assessed a 4% tax and transactions $10,600,000 and up will be examined a 5.5% tax. 
 - Link to United to House LA (ULA) Dashboard (Los Department).
 - Link to Source Data 
 
How frequently is the City's real residential or commercial property transfer tax used? 
 The City's real residential or commercial property transfer tax is appropriate on all documents that communicate real residential or commercial property within the City, unlike residential or commercial property taxes which occur annually. The real residential or commercial property transfer tax is an excise tax on the privilege of selling a genuine residential or commercial property interest, not a tax on the residential or commercial property itself, and is calculated on the factor to consider or value of the real residential or commercial property interest communicated. 
 Does the City enforce a genuine residential or commercial property transfer tax aside from the unique tax imposed under Measure ULA? 
 Yes, the City imposes a real residential or commercial property transfer tax on all files that convey real residential or commercial property within the City. Today tax (" Base Tax") is computed based on the [consideration](https://asmauburn.com) or worth of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") imposes an extra tax on top of the Base Tax. 
 What is Measure ULA and how does it work? 
 Measure ULA developed the ULA Tax to fund economical housing jobs and offer resources to renters at threat of homelessness. The ULA Tax is troubled all files that communicate real residential or commercial property within the City of Los Angeles when the consideration or value of the real residential or commercial property interest conveyed surpasses a limit of 5 million dollars, or is ten million dollars or higher, respectively. 
 What are the rate parts of the Base Tax and the ULA Tax under the City's real 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 conveyed over $5,150,000, but under $10,300,000 and 2) 5.5% for residential or commercial properties communicated at $10,300,000 or more (" ULA Rates").
 - The specific language for the brand-new rates can be [discovered](https://www.agentjill.com) here: https://clkrep.lacity.org/onlinedocs/2022/22-1100-S2_ord_187692_1-1-23.pdf.
 - The chart below is summary of the rates:.
 
* Note: the City's Base Rate is $2.25 for every $500 or fractional part thereof. A transfer in which the worth of the residential or commercial property communicated is not divisible by $500 will be [assembled](https://vibes.com.ng) to the nearest $500 for the estimation of the Base Tax. This does not apply to the ULA Rate estimations, which are percentage-based. 
 When did the ULA Tax enter into impact? 
 The ULA Tax applies to certified conveyances of genuine residential or commercial property interests that happen on or after April 1, 2023. 
 How will the City use the April 1 reliable date of the ULA Tax? 
 The City's treatment for using the ULA Tax is designed on the ownership modification rules under California Board of Equalization residential or [commercial property](https://mspdeveloper.com) tax guideline 462.260 for all files based on the City's real residential or commercial property transfer tax. If a modification of ownership occurred before April 1 however is received by the county for tape-recording on or after April 1, 2023, the taxpayer will need to offer evidence of the real deal date to show that it in fact took place before the April 1, 2023 effective date of the ULA Tax. 
 Will the value limits under the ULA Tax be changed annually? 
 Consistent with the Measure ULA, the value thresholds of when to apply the ULA Tax and its matching rates are adjusted every year based upon the Bureau of Labor Statistics Chained Consumer Price Index. 
 How will the City's genuine residential or commercial property transfer tax be used to residential or commercial properties that are positioned partly within the borders of the City? 
 The genuine residential or commercial property transfer tax will be applied in proportion to the worth of the genuine residential or commercial property interest that was moved within the borders of the City. If an evaluation of the genuine residential or commercial property interest isn't offered, the genuine residential or commercial property transfer tax need to be applied based upon the square video of the residential or commercial property within the boundaries of the City, as a percentage of the total factor to consider or worth of the genuine residential or commercial property interest communicated. 
 How will the City handle 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 inform the celebrations to the deal of the potential overpayment or underpayment. In cases of overpayment, taxpayers will require to file a request 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 receive an invoice for the unsettled balance. 
 Are there any exemptions for the ULA Tax? 
 Yes, Measure ULA does offer exemptions for the ULA Tax. The ULA Tax will be not apply on documents that convey real residential or [commercial property](https://ykrealyussuf.com) 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 advancement and/or inexpensive housing residential or commercial property management experience.
 - A Neighborhood Land Trust, or Limited-Equity Housing Cooperative that has a history of budget friendly housing development and/or economical housing residential or commercial property management experience.
 - A limited partnership or restricted liability business wherein a recognized 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative is a general partner or managing member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of inexpensive housing advancement and/or budget friendly housing residential or commercial property management experience, or such restricted partnership or restricted liability business consists of a partner or member, respectively, that has a history of affordable housing advancement and/or budget-friendly housing residential or commercial property management experience.
 - A community land trust or limited-equity housing cooperative partnering with a knowledgeable non-profit company.
 - A community land trust or limited-equity housing cooperative that does not demonstrate a history of cost effective housing development and/ or budget-friendly housing residential or commercial property management experience which tape-records an affordability covenant, consistent with section 22.618.3( d)( 1 )( i). b. of the Los Angeles Administrative Code, on the residential or [commercial property](https://renthouz.my) at the time of the acquisition.
 
The Los Angeles Housing Department administers demands 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 received its preliminary IRS determination letter designation letter a minimum of 10 years prior to the deal and has assets of less than $1 billion.
 - The United States or any agency or instrumentality thereof, any state or area, or political neighborhood thereof, or any other federal, state or local public firm or [public entity](https://commercialproperty.im).
 - Any entity or agency exempt from the City's taxation power under the [California](https://atflat.ge) or U.S. Constitutions.
 - All other deals which are exempt from the base Real Residential or commercial property [Transfer Tax](https://www.fidelityrealestate.com) per regional, state, or federal laws and regulations.
 
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To request a decision of an entity's exemption from the ULA under 21.9.15( a), please send the following files and information to finance.ula@lacity.org. 
 - Power of Attorney.
 - Legal name.
 - Mailing address.
 - IRS 501 (c)( 3) determination letter revealing the reliable date of the exemption status.
 - Latest Form 990 or latest audited monetary declarations.
 
Once the appropriate documentation has actually been offered and a determination of exemption has been made, the Office of Finance will provide a letter licensing that transactions where the entity is the buyer/transferee are exempt from the tax. The letter is great for one year from the date of the letter. 
 If a transaction has currently happened and the tax was paid, but the buyer subsequently believes it certifies for an exemption, they will need to submit a [refund claim](https://www.proptisgh.com) using the type noted above. 
 Is the very same procedure utilized to figure out the Base Tax and the ULA Tax? 
 For the Base Tax, it is calculated based upon net value of the residential or commercial property conveyed (unique of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is determined based on gross value (consisting of the worth of any lien or encumbrance staying thereon at the time of sale.) 
 If the buyer is presuming the seller's loan, is the assumed loan quantity excluded from the worth of the residential or commercial property conveyed? 
 For the Base Tax, it is calculated based on net value (exclusive of the assumed loan amount.) For the ULA Tax, it is determined based on gross value (consisting of the assumed loan amount.) 
 If you have any questions concerning 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 
 Customer Care 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. 
 Fax 
 ( 213) 978-1548 Attn: Special Desk Unit [questionsanswered.net](https://www.questionsanswered.net/article/best-real-estate-companies?ad=dirN&qo=serpIndex&o=740012&origq=real+estate)
 E-mail 
 Finance.CustomerService@lacity.org!.?.! Office Locations The Office of Finance has 3 places throughout the City of Los Angeles to finest service your needs as well as a brand-new virtual public counter. Click on this link to find out more. Popular Online Services Register Business Tax Registration Certificate( BTRC). Non-Profit Exempt Business Tax Registration
 Certificate Renew Annual Business Tax Renewal.
Annual Police Alarm Permit. [Annual Tobacco](https://smalltownstorefronts.com) Permit. Monthly Commercial Cannabis Tax Renewal. Monthly Parking Occupancy Tax. Monthly Transient Occupancy Tax Pay Online Bill Pay Other Services Get Paperless Statements.
Penalty Waiver Request.
Public Records Request. Refund Request
 . Whistleblower Program © Copyright 2025 City of Los Angeles
 . All rights reserved.