commit 252037c1efcfa9ea5b07ee95bfadd44d08df3d96 Author: maplespangler Date: Thu Jan 15 14:08:48 2026 +0800 Update 'Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ' diff --git a/Real-Residential-Or-Commercial-Property-Transfer-Tax-And-Measure-ULA-FAQ.md b/Real-Residential-Or-Commercial-Property-Transfer-Tax-And-Measure-ULA-FAQ.md new file mode 100644 index 0000000..57898c2 --- /dev/null +++ b/Real-Residential-Or-Commercial-Property-Transfer-Tax-And-Measure-ULA-FAQ.md @@ -0,0 +1,119 @@ +
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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
+
Sales Price Calculate tax
+
Tax Due
+
Effective for [deals closing](https://www.kezarealty.co.za) after June 30, 2025, the new limits for ULA will be $5,300,000 and $10,600,000. Transactions above $5,300,000 however under $10,600,000 will be assessed a 4% tax and transactions $10,600,000 and up will be assessed 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 genuine residential or commercial property transfer tax applied?
+
The City's genuine residential or commercial property transfer tax is appropriate on all documents that communicate genuine residential or commercial property within the City, unlike [residential](https://kenyahomeshub.com) or commercial property taxes which occur every year. The real 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 calculated on the consideration or value of the real residential or commercial property interest conveyed.
+
Does the City impose a real residential or commercial property transfer tax besides the unique tax enforced under Measure ULA?
+
Yes, the City enforces a real residential or commercial property transfer tax on all files that convey real residential or commercial property within the City. Today tax (" Base Tax") is calculated based upon the consideration or value of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") enforces an additional tax on top of the Base Tax.
+
What is Measure ULA and how does it work?
+
Measure ULA developed the ULA Tax to money affordable housing tasks and provide resources to renters at threat of homelessness. The ULA Tax is troubled all documents that convey real residential or [commercial property](https://h2invest.io) within the City of Los Angeles when the consideration or value of the genuine residential or commercial property interest conveyed goes beyond a threshold of five million dollars, or is ten million dollars or greater, respectively.
+
What are the rate parts of the Base Tax and the ULA Tax under the City's genuine 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 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 particular 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:. +
+* Note: the City's Base Rate is $2.25 for each $500 or fractional part thereof. A transfer in which the value of the residential or commercial property conveyed is not divisible by $500 will be assembled to the nearby $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 effect?
+
The ULA Tax is applicable to qualified conveyances of real residential or commercial property interests that happen on or after April 1, 2023.
+
How will the City use the April 1 efficient date of the ULA Tax?
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The City's procedure for applying the ULA Tax is modeled on the ownership modification guidelines under [California Board](https://luxea.co.uk) of Equalization residential or commercial property tax guideline 462.260 for all documents subject to the City's genuine residential or commercial property transfer tax. If a change of ownership took place before April 1 but is gotten by the county for recording on or after April 1, 2023, the taxpayer will require to supply evidence of the real transaction date to reveal that it actually happened before the April 1, 2023 reliable date of the ULA Tax.
+
Will the value limits under the ULA Tax be changed annually?
+
Consistent with the Measure ULA, the value thresholds of when to apply the ULA Tax and its [matching rates](https://betweded.com) are adjusted annually 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 real residential or commercial property transfer tax will be applied in proportion to the worth of the genuine residential or commercial property interest that was moved within the boundaries of the City. If an appraisal of the genuine residential or commercial property interest isn't available, the genuine residential or commercial property transfer tax must be used based upon the square footage of the residential or commercial property within the boundaries of the City, as a proportion of the overall consideration or worth of the genuine residential or commercial property interest conveyed.
+
How will the City handle over payments or under payments of the genuine residential or commercial property transfer tax?
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If the City, through its compliance process, determines a prospective over [payment](https://www.realchoiceproperty.com) or under payment, the City will notify the celebrations to the transaction of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will require to submit an ask for refund from the Office of Finance. The Claim for Refund Application can be found here:
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https://finance.lacity.gov/sites/g/files/wph1721/files/2021-04/refundclaim%20%281%29.pdf
+
In case of underpayment, the taxpayer will receive a billing for the unsettled balance.
+
Exist any [exemptions](https://dreampropertiespr.com) for the ULA Tax?
+
Yes, Measure ULA does [offer exemptions](https://saleproperty.net) for the [ULA Tax](https://penangproperty.net). The ULA Tax will be not be suitable on files that communicate real residential or commercial property within the City of Los Angeles if the [transferee](https://propdukaan.in) is described under newly 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
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- A non-profit entity within Internal Revenue Code area 501( c)( 3) with a history of affordable housing development and/or economical housing residential or commercial property management experience. +
- A Community Land Trust, or Limited-Equity Housing Cooperative that has a history of budget friendly housing development and/or inexpensive housing residential or commercial property management experience. +
- A limited partnership or limited liability company where an acknowledged 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative is a basic partner or [managing](https://my-tenders.com) member and such 501( c)( 3) nonprofit corporation, community land trust, or limited-equity housing cooperative has a history of economical housing development and/or affordable housing residential or commercial property management experience, or such minimal collaboration or restricted liability business consists of a partner or member, respectively, that has a history of affordable housing advancement and/or cost effective housing residential or commercial property management experience. +
- A community land trust or limited-equity housing cooperative partnering with an experienced non-profit organization. +
- A [community land](https://khresearchandanalytics.com) trust or limited-equity housing cooperative that does not demonstrate a history of economical housing advancement and/ or inexpensive housing residential or commercial property management experience which tapes an affordability covenant, consistent with section 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
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- A recognized 501( c)( 3) entity which received its initial IRS decision letter classification letter a minimum of ten years prior to the transaction and has properties of less than $1 billion. +
- The United States or any firm or instrumentality thereof, any state or territory, or political subdivision thereof, or any other federal, state or local public firm or public entity. +
- Any entity or firm exempt from the City's tax power under the California or U.S. [Constitutions](https://houseplusplus.titancorpvn.com). +
- All other deals which are exempt from the base Real Residential or commercial property Transfer Tax per local, state, or federal laws and guidelines. +
+The Office of Finance administers ask 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 send the following files and details to finance.ula@lacity.org.
+
- Power of Attorney. +
- Legal name. +
- Mailing address. +
- IRS 501 (c)( 3) determination letter showing the effective date of the exemption status. +
- Latest Form 990 or newest audited financial declarations. +
+Once the proper paperwork has been supplied and a decision 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 actually currently happened and the tax was paid, but the buyer consequently believes it certifies for an exemption, they will need to submit a refund claim utilizing the type noted above.
+
Is the same step used to determine the Base Tax and the ULA Tax?
+
For the Base Tax, it is calculated based on net value of the residential or commercial property conveyed (exclusive of the worth of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is determined based on gross value (consisting of the worth of any lien or encumbrance staying thereon at the time of sale.)
+
If the buyer 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 computed based upon net worth (exclusive of the assumed loan amount.) For the ULA Tax, it is computed based on gross worth (consisting of the presumed loan amount.)
+
If you have any questions regarding the ULA Tax, please contact finance.ula@lacity.org or (213) 635-7277.
+
Office of Finance
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Office of Finance Special Desk Unit +200 North Spring Street, Room 101 +Los Angeles, CA 90012
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( 213) 978-1548 Attn: Special Desk Unit
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E-mail
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