Received a Notification of Non-Compliance?
Renewal Deadlines, Forms and Online Services
Fire Permit
Police Permits
Tobacco Permits
About 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
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 thresholds for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 but under $10,600,000 will be assessed 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 applied?
The City's genuine residential or commercial property transfer tax applies on all documents that convey genuine residential or commercial property within the City, unlike residential or commercial property taxes which happen yearly. The genuine residential or commercial property transfer tax is an excise tax on the benefit of offering a real residential or commercial property interest, not a tax on the residential or commercial property itself, and is determined on the consideration or worth of the real residential or commercial property interest conveyed.
Does the City impose a real residential or commercial property transfer tax other than the unique tax enforced under Measure ULA?
Yes, the City imposes a real residential or commercial property transfer tax on all documents that convey real residential or commercial property within the City. The present tax (" Base Tax") is calculated based on the factor to consider or value of the real residential or commercial property interest conveyed at a rate of 0.45%. The unique 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 money budget-friendly housing tasks and supply resources to renters at threat of homelessness. The ULA Tax is troubled all documents that communicate real 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 threshold 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 communicated over $5,150,000, however 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 brand-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 each $500 or part thereof. A transfer in which the value of the residential or commercial property communicated is not divisible by $500 will be rounded up to the closest $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 effect?
The ULA Tax applies to qualified conveyances of genuine residential or commercial property interests that occur on or after April 1, 2023.
How will the City use the April 1 reliable date of the ULA Tax?
The City's treatment for applying 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 documents based on the City's real residential or commercial property transfer tax. If a modification of ownership occurred before April 1 however is gotten by the county for recording on or after April 1, 2023, the taxpayer will require to provide evidence of the actual deal date to show that it actually took place before the April 1, 2023 effective date of the ULA Tax.
Will the worth limits under the ULA Tax be adjusted annually?
Consistent with the Measure ULA, the worth thresholds of when to apply the ULA Tax and its matching rates are adjusted yearly based upon the Bureau of Labor Statistics Chained Consumer Price Index.
How will the City's genuine residential or commercial property transfer tax be used to residential or commercial properties that are positioned 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 real 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 available, the real residential or commercial property transfer tax should be applied based upon the square video footage 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 conveyed.
How will the City handle over payments or under payments of the real residential or commercial property transfer tax?
If the City, through its compliance procedure, recognizes a possible over payment or under payment, the City will alert the parties to the deal of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will need to file a demand 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 receive an invoice for the unsettled balance.
Exist any exemptions for the ULA Tax?
Yes, Measure ULA does offer exemptions for the ULA Tax. The ULA Tax will be not apply on files that communicate real residential or commercial property within the City of Los Angeles if the transferee is explained under newly added 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 affordable 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 cost effective housing residential or commercial property management experience.
- A restricted collaboration or limited liability company where an acknowledged 501( c)( 3) not-for-profit corporation, neighborhood 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 affordable housing development and/or affordable 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 budget-friendly housing development and/or cost effective housing residential or commercial property management experience.
- A community land trust or limited-equity housing cooperative partnering with a knowledgeable non-profit company.
- A neighborhood land trust or limited-equity housing cooperative that does not show a history of budget-friendly housing advancement and/ or inexpensive housing residential or commercial property management experience which tape-records a price 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 got its initial IRS decision letter classification letter a minimum of ten years prior to the deal and has assets of less than $1 billion.
- The United States or any agency or instrumentality thereof, any state or area, or political subdivision 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 regional, state, or federal laws and policies.
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To request 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 (c)( 3) determination letter revealing the reliable date of the exemption status.
- Newest Form 990 or latest audited monetary statements.
Once the appropriate paperwork has actually been provided and a determination of exemption has actually been made, the Office of Finance will provide a letter certifying 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 currently occurred and the tax was paid, but the buyer subsequently thinks it receives an exemption, they will require to file a refund claim using the kind kept in mind above.
Is the very same procedure used to determine the Base Tax and the ULA Tax?
For the Base Tax, it is calculated based upon net value of the residential or commercial property communicated (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 worth (consisting of the worth of any lien or encumbrance remaining thereon at the time of sale.)
If the purchaser is assuming the seller's loan, is the assumed loan amount excluded from the worth of the residential or commercial property conveyed?
For the Base Tax, it is calculated based upon net worth (unique of the assumed loan amount.) For the ULA Tax, it is calculated based upon gross value (including the presumed loan amount.)
If you have any questions 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
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 3 locations across the City
of Los Angeles to best service your requirements as well as a brand-new virtual public counter. Click here 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 booked.mortgage-broker-sheffield.com