redflagdeals.com
Received a Notice of Non-Compliance?
Renewal 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
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
Prices Calculate tax
Tax Due
Effective for transactions closing after June 30, 2025, the new limits for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 however under $10,600,000 will be examined a 4% tax and transactions $10,600,000 and up will be assessed a 5.5% tax.
- Link to United to House LA (ULA) Dashboard (Los Angeles Housing Department).
- Link to Source Data
How often is the City's genuine residential or commercial property transfer tax applied?
The City's genuine residential or commercial property transfer tax is applicable on all documents that communicate real residential or commercial property within the City, unlike residential or commercial property taxes which occur every year. The real residential or commercial property transfer tax is an excise tax on the advantage of offering a genuine residential or commercial property interest, not a tax on the residential or commercial property itself, and is determined on the factor to consider or value of the genuine residential or commercial property interest communicated.
Does the City impose a real residential or commercial property transfer tax aside from the special tax enforced under Measure ULA?
Yes, the City imposes a genuine residential or commercial property transfer tax on all files that communicate genuine residential or commercial property within the City. Today tax (" Base Tax") is computed based on the factor to consider or value of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") enforces 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 fund budget friendly housing projects and provide resources to tenants at danger of homelessness. The ULA Tax is enforced on all documents that convey real residential or commercial property within the City of Los Angeles when the factor to consider or worth of the real residential or commercial property interest communicated goes beyond a limit of five million dollars, or is 10 million dollars or higher, respectively.
What are the rate elements 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 conveyed at $10,300,000 or more (" ULA Rates").
- The specific language for the new rates can be found 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 closest $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 go into effect?
The ULA Tax is relevant to certified conveyances of real residential or commercial property interests that take place on or after April 1, 2023.
How will the City apply the April 1 effective date of the ULA Tax?
The City's treatment for using the ULA Tax is modeled on the ownership change rules under California Board of Equalization residential or commercial property tax rule 462.260 for all documents subject to the City's genuine residential or commercial property transfer tax. If a modification of ownership took place before April 1 however is received by the county for tape-recording on or after April 1, 2023, the taxpayer will require to offer proof of the real transaction date to reveal that it really took place before the April 1, 2023 efficient date of the ULA Tax.
Will the worth thresholds under the ULA Tax be adjusted annually?
Consistent with the Measure ULA, the worth thresholds of when to use the ULA Tax and its matching rates are adjusted each 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 applied to residential or commercial properties that are located partly within the boundaries of the City?
The genuine residential or commercial property transfer tax will be applied in proportion to the value of the genuine residential or commercial property interest that was moved within the borders of the City. If a valuation of the genuine residential or commercial property interest isn't readily available, the real residential or commercial property transfer tax must be applied based upon the square footage of the residential or commercial property within the limits of the City, as a percentage of the overall consideration or worth of the real residential or commercial property interest communicated.
How will the City deal with over payments or under payments of the real residential or commercial property transfer tax?
If the City, through its compliance procedure, determines a potential over payment or under payment, the City will alert the parties to the transaction of the potential overpayment or underpayment. In cases of overpayment, taxpayers will require to submit 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 get a billing for the unsettled balance.
Exist any exemptions for the ULA Tax?
Yes, Measure ULA does provide exemptions for the ULA Tax. The ULA Tax will be not be applicable on documents that convey genuine residential or commercial property within the City of Los Angeles if the transferee is explained under recently 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 budget friendly 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 affordable housing residential or commercial property management experience.
- A restricted partnership or restricted liability business in which an acknowledged 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a general partner or handling member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of economical housing development and/or budget friendly housing residential or commercial property management experience, or such restricted partnership or limited liability business consists of a partner or member, respectively, that has a history of budget-friendly housing development and/or budget friendly housing residential or commercial property management experience.
- A neighborhood land trust or limited-equity housing cooperative partnering with a skilled non-profit company.
- A community land trust or limited-equity housing cooperative that does not demonstrate a history of affordable housing development and/ or inexpensive housing residential or commercial property management experience which tape-records an affordability covenant, constant with area 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 initial IRS decision letter designation letter a minimum of 10 years prior to the deal and has properties 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 regional public firm or public entity.
- Any entity or firm exempt from the City's tax power under the California or U.S. .
- All other deals which are exempt from the base Real Residential or commercial property Transfer Tax per local, 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 files and details 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.
- Newest Form 990 or most current audited monetary declarations.
Once the proper paperwork has been provided and a determination of exemption has actually been made, the Office of Finance will supply a letter licensing that transactions where the entity is the buyer/transferee are exempt from the tax. The letter benefits one year from the date of the letter.
If a transaction has already occurred and the tax was paid, however the purchaser consequently thinks it gets approved for an exemption, they will need to submit a refund claim utilizing the kind 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 worth of the residential or commercial property conveyed (exclusive of the value of any lien or encumbrance staying thereon at the time of sale.) For the ULA Tax, it is determined based on gross value (consisting of the value of any lien or encumbrance remaining thereon at the time of sale.)
If the buyer is presuming the seller's loan, is the assumed loan amount omitted from the worth of the residential or commercial property communicated?
For the Base Tax, it is computed based upon net worth (unique of the assumed loan amount.) For the ULA Tax, it is computed based upon gross worth (consisting of the assumed loan quantity.)
If you have any concerns 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 Service 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 locations throughout the City
of Los Angeles to best service your needs as well as a new virtual public counter. Click here 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 reserved.