Brentwood
Reported ULA revenue: approximately $105.4 million. High sale prices and trophy properties make the Westside a major source of the tax.
Policy Watch
Measure ULA and the Pacific Palisades rebuild.
Los Angeles voters may be asked whether some fire-damaged Palisades owners should receive relief from the city's mansion tax. The question lands at the intersection of rebuilding, relocation, and one of LA's most debated housing taxes.
Approved
2022
Effective
Apr. 2023
Tax Rates
4% / 5.5%
The Setup
A housing tax is meeting a neighborhood still working through a disaster.
Measure ULA is the City of Los Angeles' additional transfer tax on high-value real estate sales. Voters approved it in November 2022, and it took effect on April 1, 2023. At launch, it added a 4% tax on transfers above $5 million and a 5.5% tax above $10 million, with thresholds adjusted over time.
The money is meant for affordable housing and homelessness prevention. Since it took effect, ULA has become part of the conversation on almost every large transaction in the city, from estates to apartment buildings to commercial properties.
Pacific Palisades brings a more specific circumstance. Some owners are not simply choosing to sell into a strong market. They are sorting through insurance, construction costs, relocation plans, and whether rebuilding still makes sense for their family.
The Palisades exemption debate is less about a normal luxury sale and more about what happens when a tax designed for high-dollar transfers meets owners making decisions after a fire.
The Vote
The Council moved the Palisades exemption forward with a 15-0 vote.
The Los Angeles City Council file for the proposal shows a 15-0 vote on June 17, 2026, advancing ballot language tied to an exemption for qualifying fire-damaged properties in Pacific Palisades. The proposal focuses on whether certain owners should receive ULA relief on a limited first sale after the fire.
It is a small geographic carve-out, but it is easy to see why it has drawn attention. In the Palisades, sale proceeds may be tied to the next home, a rebuild budget, a loan payoff, or simply a decision to move on.
Revenue Map
The largest checks have come from a handful of high-value areas.
Bel Air
Reported ULA revenue: approximately $78.9 million. Bel Air's contribution reflects the way a few large transactions can carry meaningful revenue.
Hollywood
Reported ULA revenue: approximately $71.2 million, helped by a mix of residential, multifamily, and commercial trades.
Playa Vista
Reported ULA revenue: approximately $59.9 million. Larger commercial and institutional transactions can move the totals quickly.
Pacific Palisades
Reported ULA revenue: approximately $58.8 million, which helps explain why a Palisades exemption is politically and financially visible.
Downtown Los Angeles
Reported ULA revenue: approximately $31.1 million, a reminder that the tax reaches well beyond single-family mansions.
Market Effect
ULA has raised money, and it has changed behavior.
The case for ULA is direct: Los Angeles needs housing money, and high-value real estate transfers can produce it. Supporters view the tax as a way to fund affordable housing and tenant protections from the top end of the market.
The tradeoff shows up in the market. ULA can make sellers wait, make buyers ask for a discount, and make developers rework land values. In commercial property, a few percentage points can be the difference between a deal that pencils and one that sits.
Since passage, the tax has become part of pricing strategy. It is not the only reason large deals have slowed; rates, insurance, operating costs, and office weakness all matter. But ULA is now one of the numbers that serious sellers and buyers have to underwrite.
Local Read
The Palisades question is about timing, pressure, and context.
There is a difference between selling a long-held trophy property by choice and selling because the original plan for the home no longer works. That distinction is driving much of the Palisades discussion.
For owners, buyers, and investors, the practical step is to model ULA early. Before pricing a property, writing an offer, or evaluating a redevelopment site, it matters whether the tax applies, who is likely to absorb it, and whether a pending exemption could change the net result.
Source note: this page is original commentary based on a general review of Measure ULA, the Los Angeles City Clerk Council file for the Pacific Palisades exemption proposal, official City of Los Angeles Measure ULA materials, and real estate reporting. It is intended for informational discussion only and is not legal, tax, zoning, or development advice. References: The Real Deal, Los Angeles City Clerk Council File 26-0774, LA Office of Finance Measure ULA, LAHD Measure ULA.
Property-Specific Read
Need to understand how ULA affects a property?
LA Creative Realty can help you look at sale price, tax exposure, timing, and the practical choices around a Los Angeles property.
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