As most of you heard, there has been a great deal of discussions about Measure ULA & Measure GS, in the greater Los Angeles area. Hence, I thought I would simply try to clarify the important points.
Measure ULA is a new tax law that effects the City of Los Angeles and will take effect on April 1st, 2023. This tax is also known as the “Homelessness and Housing Solution Tax”. This was a ballot measure in Los Angeles recently approved by the voters in 2022 during the Los Angeles County Midterm Elections. Often this tax is called as a “mansion tax” and often misleadingly advertised as such. In reality it will be imposed on both residential and commercial real estate sales.
Simply stated properties that are sold at $5 million or more will incur a total transfer tax of 4.56%. This is in addition to the existing transfer tax. This tax will be an additional 4% to the existing transfer tax. In other words, on a sales price of $5 million which would be around $228,000 additional transfer tax.
Properties that are sold at $10 million or above will be taxed 6.06% this is an additional 5.5% tax. Simply stated about on $10 million it will be a $606,000 additional transfer tax.
Measure GS affects Santa Monica, this measure will take effect on March 1st,2023 and any property that is sold at or over $8 million will be taxed a total of 5.71%. This is an additional 5% transfer tax.
The City of Beverly Hills Proper and the City of Malibu are not included in this additional transfer tax.
The Escrow companies are required to deduct this tax, regardless of whether the seller is taking a loss on the property or not.
As I stated above It is important to note that this transfer tax affects not just residential but commercial sales as well.
Thank you for all who asked about these two Measures and inspired me to do a blog post about it.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) email@example.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708
Amen! All my relatives live in CA, and as a former resident for over four decades, I watch everything that happens in California.
I just heard about this yesterday. It is OUTRAGEOUS. When we started living in Sedona full-time in January 2007, We did not change our tax status until the end of the year because we still owned a house in California. CA would check your credit cards, and gas cards, to see if you were still traveling to the state and charge you state income tax based on that alone. It was pure hell fighting the state. I feel sorry for my friends and relatives who have to put up with California.
My advice to Zonies who want to beat the heat during July and August is the rent at the beach rather than buy a home. Then I will explain why!