Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ (#1) · Issues · Elsie Maddock / machinelinker

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

Sales Price Calculate tax

Tax Due

Effective for deals closing after June 30, 2025, the brand-new thresholds for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 but under $10,600,000 will be evaluated 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 Angeles Housing Department).
- Link to Source Data

How typically is the City's real residential or commercial property transfer tax applied?

The City's real residential or commercial property transfer tax applies on all documents that convey real residential or commercial property within the City, unlike residential or commercial property taxes which happen annually. The genuine residential or commercial property transfer tax is an excise tax on the advantage of offering a real 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 conveyed.

Does the City impose a real residential or commercial property transfer tax aside from the special tax enforced under Measure ULA?

Yes, the City enforces a genuine residential or commercial property transfer tax on all documents that communicate genuine residential or commercial property within the City. The present tax (" Base Tax") is computed based on the consideration or worth of the or commercial property interest conveyed at a rate of 0.45%. The special tax under Measure ULA (" ULA Tax") imposes an additional tax on top of the Base Tax.

What is Measure ULA and how does it work?

Measure ULA established the ULA Tax to money cost effective 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 communicated surpasses a threshold of 5 million dollars, or is 10 million dollars or higher, respectively.

What are the rate components of the Base Tax and the ULA Tax under the City's genuine 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 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 each $500 or fractional part thereof. A transfer in which the value of the residential or commercial property conveyed is not divisible by $500 will be rounded up to the nearest $500 for the calculation 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 is appropriate to certified conveyances of genuine residential or commercial property interests that occur on or after April 1, 2023.

How will the City apply the April 1 effective date of the ULA Tax?

The City's procedure for applying the ULA Tax is designed on the ownership change rules under California Board of Equalization residential or commercial property tax guideline 462.260 for all documents subject to the City's genuine residential or commercial property transfer tax. If a change of ownership occurred before April 1 however is gotten by the county for recording on or after April 1, 2023, the taxpayer will require to supply evidence of the real transaction date to show that it really took place before the April 1, 2023 effective date of the ULA Tax.

Will the worth limits under the ULA Tax be adjusted annually?

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

How will the City's genuine residential or commercial property transfer tax be applied to residential or commercial properties that are situated partly within the boundaries of the City?

The real residential or commercial property transfer tax will be used in percentage to the value of the genuine residential or commercial property interest that was moved within the limits of the City. If an evaluation of the real residential or commercial property interest isn't offered, the real residential or commercial property transfer tax must be applied based upon the square video of the residential or commercial property within the borders of the City, as a percentage of the overall consideration or value of the genuine residential or commercial property interest communicated.

How will the City handle over payments or under payments of the genuine residential or commercial property transfer tax?

If the City, through its compliance procedure, recognizes a potential over payment or under payment, the City will notify the parties to the transaction of the possible overpayment or underpayment. In cases of overpayment, taxpayers will need to file an ask 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 unpaid balance.

Are there any exemptions for the ULA Tax?

Yes, Measure ULA does supply exemptions for the ULA Tax. The ULA Tax will be not be applicable on files that communicate real residential or commercial property within the City of Los Angeles if the transferee is explained under freshly included sections 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 area 501( c)( 3) with a history of affordable housing advancement and/or cost effective housing residential or commercial property management experience.
- A Community Land Trust, or Limited-Equity Housing Cooperative that has a history of affordable housing advancement and/or budget-friendly housing residential or commercial property management experience.
- A minimal partnership or limited liability business in which a recognized 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a basic partner or handling member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of affordable housing development and/or cost effective housing residential or commercial property management experience, or such limited collaboration or limited liability business includes a partner or member, respectively, that has a history of budget-friendly housing advancement and/or affordable housing residential or commercial property management experience.
- A neighborhood land trust or limited-equity housing cooperative partnering with a knowledgeable non-profit organization.
- A community land trust or limited-equity housing cooperative that does not show a history of inexpensive housing advancement and/ or cost effective housing residential or commercial property management experience which records a price covenant, constant 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 ask for ULA tax exemptions under LAMC Section 21.9.14.

Other Exemptions under LAMC Section 21.9.15

- A recognized 501( c)( 3) entity which got its preliminary IRS determination letter classification letter a minimum of 10 years prior to the deal and has properties of less than $1 billion.
- The United States or any firm or instrumentality thereof, any state or territory, or political subdivision thereof, or any other federal, state or regional public agency or public entity.
- Any entity or company 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 policies.
The Office of Finance administers ask for ULA tax exemptions under LAMC Section 21.9.15. To ask for a decision of an entity's exemption from the ULA under 21.9.15( a), please submit the following documents and info to finance.ula@lacity.org.

- Power of Attorney.
- Legal name.
- Mailing address.
- IRS 501 (c)( 3) determination letter showing the efficient date of the exemption status.
- Most current Form 990 or latest audited financial statements.
Once the appropriate documentation has actually been supplied and a decision of exemption has been made, the Office of Finance will supply a letter licensing that deals where the entity is the buyer/transferee are exempt from the tax. The letter is good for one year from the date of the letter.

If a transaction has actually currently happened and the tax was paid, however the buyer consequently believes it qualifies for an exemption, they will require to submit a refund claim utilizing the type noted above.

Is the same procedure utilized to determine the Base Tax and the ULA Tax?

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

If the purchaser is assuming the seller's loan, is the assumed loan amount excluded from the value of the residential or commercial property conveyed?

For the Base Tax, it is computed based upon net worth (special of the assumed loan quantity.) For the ULA Tax, it is determined based upon gross value (including the presumed loan amount.)

If you have any concerns relating to 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

E-mail

Finance.CustomerService@lacity.org!.?.! Office Locations The Office of Finance has 3 areas throughout the City
of Los Angeles to finest service your requirements as well as a brand-new virtual public counter. Click on this link for more details. 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 booked.condos-plus.com

Received a Notification of Non-Compliance?
 
Renewal Deadlines, Forms and Online Services
 
Fire Permit
 Police Permits
 Tobacco Permits
 
About the Business Tax
 Fiscal vs. Fiscal 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
 
Collection Agency Information
 Offer in Compromise Info and FAQ
 
Changing or Closing Your Business
 
 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 
 Sales Price Calculate tax 
 Tax Due 
 Effective for deals closing after June 30, 2025, the brand-new thresholds for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 but under $10,600,000 will be evaluated 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 Angeles Housing Department).
 - Link to Source Data 
 
How typically is the City's real residential or commercial property transfer tax applied? 
 The City's real residential or commercial property transfer tax applies on all documents that convey real residential or commercial property within the City, unlike residential or commercial property taxes which happen annually. The genuine residential or commercial property transfer tax is an excise tax on the advantage of offering a real 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 conveyed. 
 Does the City impose a real residential or commercial property transfer tax aside from the special tax enforced under Measure ULA? 
 Yes, the City enforces a genuine residential or commercial property transfer tax on all documents that communicate genuine residential or commercial property within the City. The present tax (" Base Tax") is computed based on the consideration or worth of the or commercial property interest conveyed at a rate of 0.45%. The special tax under Measure ULA (" ULA Tax") imposes an additional tax on top of the Base Tax. 
 What is Measure ULA and how does it work? 
 Measure ULA established the ULA Tax to money cost effective 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 communicated surpasses a threshold of 5 million dollars, or is 10 million dollars or higher, respectively. 
 What are the rate components of the Base Tax and the ULA Tax under the City's genuine 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 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 each $500 or fractional part thereof. A transfer in which the value of the residential or commercial property conveyed is not divisible by $500 will be rounded up to the nearest $500 for the calculation 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 is appropriate to certified conveyances of genuine residential or commercial property interests that occur on or after April 1, 2023. 
 How will the City apply the April 1 effective date of the ULA Tax? 
 The City's procedure for applying the ULA Tax is designed on the ownership change rules under California Board of Equalization residential or commercial property tax guideline 462.260 for all documents subject to the City's genuine residential or commercial property [transfer tax](https://atworldproperties.co.za). If a change of ownership occurred before April 1 however is gotten by the county for recording on or after April 1, 2023, the taxpayer will require to supply evidence of the real transaction date to show that it really took place before the April 1, 2023 effective date of the ULA Tax. 
 Will the worth limits under the ULA Tax be adjusted annually? 
 Consistent with the Measure ULA, the worth thresholds of when to apply the ULA Tax and its matching rates are adjusted annually based upon the Bureau of Labor Statistics Chained Consumer Price Index. 
 How will the City's genuine residential or commercial property transfer tax be applied to residential or commercial properties that are situated partly within the boundaries of the City? 
 The real residential or commercial property transfer tax will be used in percentage to the value of the genuine residential or commercial property interest that was moved within the limits of the City. If an evaluation of the real residential or commercial property interest isn't offered, the real residential or commercial property [transfer tax](https://tbilproperty.com) must be applied based upon the square video of the residential or commercial property within the borders of the City, as a percentage of the overall consideration or value of the genuine residential or commercial property interest communicated. 
 How will the City handle over payments or under payments of the genuine residential or commercial property transfer tax? 
 If the City, through its compliance procedure, recognizes a potential over payment or under payment, the City will notify the [parties](https://2c.immo) to the transaction of the possible [overpayment](https://mcsold.ca) or underpayment. In cases of overpayment, taxpayers will need to file an ask 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 unpaid balance. 
 Are there any exemptions for the ULA Tax? 
 Yes, Measure ULA does supply exemptions for the ULA Tax. The ULA Tax will be not be applicable on files that communicate real residential or [commercial property](https://movingsoon.co.uk) within the City of Los Angeles if the transferee is explained under freshly included sections 21.9.14 and 21.9.15 of the Los [Angeles Municipal](https://lefkada-hotels.gr) Code (" LAMC"). The [transferee descriptions](https://2c.immo) are as follows: 
 Qualified Affordable Housing Organizations under LAMC Section 21.9.14 
 - A non-profit entity within Internal Revenue Code area 501( c)( 3) with a history of affordable housing advancement and/or [cost effective](https://seasiderealestate.al) housing residential or commercial property [management experience](https://kopenaandecosta.nl).
 - A Community Land Trust, or Limited-Equity Housing Cooperative that has a history of affordable housing advancement and/or budget-friendly housing residential or commercial property management experience.
 - A minimal partnership or limited liability business in which a recognized 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a basic partner or handling member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of affordable housing development and/or cost effective housing residential or commercial property management experience, or such limited collaboration or limited liability business includes a partner or member, respectively, that has a history of [budget-friendly housing](https://atofabproperties.com) advancement and/or affordable housing residential or commercial property management experience.
 - A neighborhood land trust or limited-equity housing cooperative partnering with a knowledgeable non-profit organization.
 - A community land trust or limited-equity housing cooperative that does not show a history of inexpensive housing advancement and/ or cost effective housing residential or [commercial](https://barupert.com) property management experience which records a price covenant, constant 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 ask for ULA tax exemptions under LAMC Section 21.9.14. 
 Other Exemptions under LAMC Section 21.9.15 
 - A recognized 501( c)( 3) entity which got its preliminary IRS determination letter classification letter a minimum of 10 years prior to the deal and has properties of less than $1 billion.
 - The United States or any firm or instrumentality thereof, any state or territory, or political subdivision thereof, or any other federal, state or regional public agency or public entity.
 - Any entity or company 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 policies.
 
The Office of Finance administers ask for ULA tax exemptions under LAMC Section 21.9.15. To ask for a decision of an entity's exemption from the ULA under 21.9.15( a), please submit the following documents and info to finance.ula@lacity.org. 
 - Power of Attorney.
 - Legal name.
 - Mailing address.
 - IRS 501 (c)( 3) determination letter showing the efficient date of the exemption status.
 - Most current Form 990 or latest audited financial statements.
 
Once the appropriate documentation has actually been supplied and a decision of exemption has been made, the Office of Finance will supply a letter licensing that deals where the entity is the buyer/transferee are exempt from the tax. The letter is good for one year from the date of the letter. 
 If a transaction has actually currently happened and the tax was paid, however the buyer consequently believes it qualifies for an exemption, they will require to submit a refund claim utilizing the type noted above. 
 Is the same procedure utilized to determine the [Base Tax](https://lefkada-hotels.gr) and the ULA Tax? 
 For the Base Tax, it is calculated based on net worth of the residential or commercial property communicated (unique of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is calculated based on gross worth (consisting of the worth of any lien or encumbrance staying thereon at the time of sale.) 
 If the purchaser is assuming the seller's loan, is the assumed loan amount excluded from the value of the residential or commercial property conveyed? 
 For the Base Tax, it is computed based upon net worth (special of the assumed loan quantity.) For the ULA Tax, it is determined based upon gross value (including the presumed loan amount.) 
 If you have any concerns relating to the ULA Tax, please [contact finance](https://www.dominicanrepublicrealestate.org).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 
 E-mail 
 Finance.CustomerService@lacity.org!.?.! Office Locations The Office of Finance has 3 areas throughout the City of Los Angeles to finest service your requirements as well as a brand-new virtual public counter. Click on this link for more details. 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](https://fashionweekvenues.com) Request.
Public Records Request. Refund Request
 . Whistleblower Program © Copyright 2025 City of Los Angeles
 . All rights booked.[condos-plus.com](http://www.condos-plus.com)