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

cointelegraph.com
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
   
   List prices Calculate tax
   
   Tax Due
   
   Effective for transactions 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 however 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 used?
   
   The City’s real residential or commercial property transfer tax applies on all files that communicate 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 opportunity of offering a genuine residential or commercial property interest, not a tax on the residential or commercial property itself, and is calculated on the factor to consider or worth of the real residential or commercial property interest conveyed.
   
   Does the City impose a genuine residential or commercial property transfer tax aside from the special tax imposed under Measure ULA?
   
   Yes, the City imposes a genuine residential or commercial property transfer tax on all documents that communicate real residential or commercial property within the City. Today tax (” Base Tax”) is computed based on the consideration or worth of the genuine residential or commercial property interest communicated at a rate of 0.45%. The special tax under Measure ULA (” ULA Tax”) imposes 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 fund cost effective housing projects and offer resources to occupants at danger of homelessness. The ULA Tax is troubled all documents that convey genuine residential or commercial property within the City of Los Angeles when the consideration or worth of the genuine residential or commercial property interest conveyed surpasses a limit of five million dollars, or is 10 million dollars or greater, respectively.
   
   What are the rate parts 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, however 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 brand-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 assembled to the nearby $500 for the computation of the Base Tax. This does not use to the ULA Rate computations, which are percentage-based.
   
   When did the ULA Tax go into impact?
   
   The ULA Tax is relevant to qualified 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 treatment for using the ULA Tax is designed on the ownership modification guidelines under California Board of Equalization residential or commercial property tax guideline 462.260 for all files subject to the City’s genuine residential or commercial property transfer tax. If a modification of ownership happened before April 1 but is gotten by the county for tape-recording on or after April 1, 2023, the taxpayer will need to offer evidence of the real transaction date to reveal that it actually occurred before the April 1, 2023 reliable date of the ULA Tax.
   
   Will the value limits under the ULA Tax be changed every year?
   
   Consistent with the Measure ULA, the value thresholds of when to apply the ULA Tax and its corresponding rates are adjusted every year 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 located partially within the limits of the City?
   
   The real residential or commercial property transfer tax will be applied in percentage to the value of the genuine residential or commercial property interest that was transferred within the boundaries of the City. If an appraisal of the genuine residential or commercial property interest isn’t readily available, the genuine residential or commercial property transfer tax ought to be applied based on the square video of the residential or commercial property within the boundaries of the City, as a proportion of the total factor to consider or value of the real 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 possible over payment or under payment, the City will inform the parties 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 receive an invoice for the unpaid balance.
   
   Are there any exemptions for the ULA Tax?
   
   Yes, Measure ULA does offer exemptions for the ULA Tax. The ULA Tax will be not be suitable on documents that convey genuine residential or commercial property within the City of Los Angeles if the transferee is explained under recently added 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 section 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 budget-friendly housing advancement and/or economical housing residential or commercial property management experience.
   - A limited collaboration or limited liability business in which an acknowledged 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a basic partner or managing member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of cost effective housing development and/or budget-friendly housing residential or commercial property management experience, or such limited collaboration or limited liability company includes a partner or member, respectively, that has a history of budget friendly housing advancement 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 organization.
   - A neighborhood land trust or limited-equity housing cooperative that does not demonstrate a history of affordable housing advancement and/ or cost effective housing residential or commercial property management experience which 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 demands for ULA tax exemptions under LAMC Section 21.9.14.
   
   Other Exemptions under LAMC Section 21.9.15
   
   - An acknowledged 501( c)( 3) entity which received its initial IRS determination letter classification letter a minimum of 10 years prior to the transaction and has possessions of less than $1 billion.
   - The United States or any company 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 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 demands for ULA tax exemptions under LAMC Section 21.9.15. To ask for a determination 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 ©( 3) determination letter showing the effective date of the exemption status.
   - Latest Form 990 or most current audited financial statements.
   Once the proper documents has actually been offered and a determination of exemption has actually been made, the Office of Finance will provide 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 deal has already taken place and the tax was paid, however the buyer consequently thinks it gets approved for an exemption, they will require to file a refund claim using the type noted above.
   
   Is the very same step used to determine the Base Tax and the ULA Tax?
   
   For the Base Tax, it is determined based on net value of the residential or commercial property conveyed (special of the worth of any lien or encumbrance staying thereon at the time of sale.) For the ULA Tax, it is computed based on gross value (including the value 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 quantity left out from the worth of the residential or commercial property communicated?
   
   For the Base Tax, it is determined based upon net worth (unique of the assumed loan amount.) For the ULA Tax, it is calculated based on gross value (including the presumed loan amount.)
   
   If you have any concerns concerning the ULA Tax, please .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 areas throughout the City
   of Los Angeles to finest service your needs in addition to a new virtual public counter. Click on this link to find out more. 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.