Los Angeles Luxury Real Estate Tax Takes Effect, Facing Lawsuits

An apartment complex in downtown Los Angeles at Eighth street and Grand avenue in Los Angeles, Calif., on Aug. 6, 2020. Kent Nishimura/Los Angeles Times/TNS

The City of Los Angeles’s new property transfer tax took effect April 1, with all real estate transactions in excess of $5 million affected.

Approved by voters last November, Measure ULA—known as the Homeless and Housing Solutions Tax—will add 4 percent to properties sold for between $5 million and $10 million, and 5.5 percent for those over $10 million.