Received a Notice 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
Debt Collector Information
Offer in Compromise Info and FAQ
Changing or Closing Your Business


1. Home

1. Faq
2. 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 transactions closing after June 30, 2025, the new thresholds for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 however under $10,600,000 will be evaluated a 4% tax and transactions $10,600,000 and up will be 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 used?
   
   The City's genuine residential or commercial property transfer tax is suitable on all files that convey genuine residential or commercial property within the City, unlike residential or commercial property taxes which happen every year. The genuine residential or commercial property transfer tax is an excise tax on the benefit 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 real residential or commercial property interest conveyed.
   
   Does the City enforce a genuine residential or commercial property transfer tax besides the special tax enforced under Measure ULA?
   
   Yes, the City imposes a genuine residential or commercial property transfer tax on all files that communicate real residential or commercial property within the City. Today tax (" Base Tax") is calculated based on the factor to consider or value of the real residential or commercial property interest communicated at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") enforces an extra tax on top of the Base Tax.
   
   What is Measure ULA and how does it work?
   
   Measure ULA established the ULA Tax to money economical housing jobs and provide resources to occupants at danger of homelessness. The ULA Tax is troubled all files that communicate real residential or commercial property within the City of Los Angeles when the factor to consider or value of the genuine residential or commercial property interest conveyed surpasses a limit of five million dollars, or is ten million dollars or greater, 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 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:.
   
3. 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 rounded up 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 enter into impact?
   
   The ULA Tax is relevant to qualified 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 designed on the ownership change rules under California Board of Equalization residential or commercial property tax guideline 462.260 for all files based on the City's genuine residential or commercial property transfer tax. If a change of ownership took place before April 1 however is received by the county for taping on or after April 1, 2023, the taxpayer will need to supply evidence of the actual transaction date to show that it actually happened before the April 1, 2023 efficient date of the ULA Tax.
   
   Will the value limits under the ULA Tax be changed yearly?
   
   Consistent with the Measure ULA, the worth limits of when to apply the ULA Tax and its corresponding rates are changed yearly based on the Bureau of Labor Statistics Chained Consumer Price Index.
   
   How will the City's real residential or commercial property transfer tax be applied to residential or commercial properties that are positioned partly within the limits of the City?
   
   The real residential or commercial property transfer tax will be used in percentage to the worth of the genuine residential or commercial property interest that was transferred within the borders of the City. If a valuation of the genuine residential or commercial property interest isn't readily available, the genuine residential or commercial property transfer tax ought to be used based upon the square video of the residential or commercial property within the borders of the City, as a percentage of the overall factor to consider or value of the genuine residential or commercial property interest communicated.
   
   How will the City deal with 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 inform the celebrations to the deal 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 discovered 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 an invoice for the unpaid balance.
   
   Are there 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 communicate real residential or commercial property within the City of Los Angeles if the transferee is described under recently included 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 area 501( c)( 3) with a history of budget friendly housing advancement and/or budget-friendly housing residential or commercial property management experience.
   - A Community Land Trust, or Limited-Equity Housing Cooperative that has a history of inexpensive housing advancement and/or affordable housing residential or commercial property management experience.
   - A minimal collaboration or limited liability business wherein an acknowledged 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) not-for-profit corporation, community land trust, or limited-equity housing cooperative has a history of economical housing advancement and/or budget-friendly housing residential or commercial property management experience, or such minimal partnership or limited liability business consists of a partner or member, respectively, that has a history of affordable housing advancement and/or economical housing residential or commercial property management experience.
   - A community land trust or limited-equity housing cooperative partnering with an experienced non-profit company.
   - A community land trust or limited-equity housing cooperative that does not show a history of inexpensive housing development and/ or cost effective housing residential or commercial property management experience which tape-records a cost 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 received its initial IRS determination letter classification letter a minimum of 10 years prior to the transaction and has assets of less than $1 billion.
   - The United States or any company or instrumentality thereof, any state or territory, or political neighborhood 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 local, state, or federal laws and policies.
   The Office of Finance administers demands 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 information to finance.ula@lacity.org.
   
   - Power of Attorney.
   - Legal name.
   - Mailing address.
   - IRS 501 (c)( 3) decision letter showing the effective date of the exemption status.
   - Newest Form 990 or newest audited monetary declarations.
   Once the suitable documents has been offered and a decision of exemption has been made, the Office of Finance will provide 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 deal has currently occurred and the tax was paid, however the purchaser consequently believes it gets approved for an exemption, they will need to file a refund claim utilizing the form kept in mind above.
   
   Is the same measure used to figure out the Base Tax and the ULA Tax?
   
   For the Base Tax, it is computed based on net worth of the residential or commercial property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is determined based upon gross worth (consisting of the value of any lien or encumbrance remaining thereon at the time of sale.)
   
   If the purchaser is presuming the seller's loan, is the assumed loan quantity left out from the value of the residential or commercial property conveyed?
   
   For the Base Tax, it is determined based on net value (exclusive of the assumed loan amount.) For the ULA Tax, it is determined based on gross worth (including the assumed loan quantity.)
   
   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
   
   Client 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 three areas throughout the City
   of Los Angeles to best service your requirements 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 scheduled.wikipedia.org