News Summary
In a pivotal move, Los Angeles Mayor Karen Bass has withdrawn her proposal to amend the city’s mansion tax, Measure ULA, just before a critical vote. The proposal aimed to ease tax burdens on certain property types, but faced scrutiny amid debates on its impact on housing production and revenue. With plans to reintroduce the bill next January, this decision reflects ongoing controversies regarding housing and taxation in the city, highlighting the complexities of urban policy in LA.
Los Angeles – In a significant development for the local housing and business landscape, Mayor Karen Bass has officially withdrawn her proposal to revise the city’s mansion tax, known as Measure ULA, just prior to its critical vote on Thursday. This maneuver comes amid challenges within the state legislature that highlighted the complexities of the tax and its implications on housing production and revenue collection.
The proposed legislation, designated as state bill SB 423, sought to amend the original Measure ULA which was passed by voters in 2022. Measure ULA imposes a tax on property sales exceeding $5.3 million, allocating the revenue towards combating homelessness and funding affordable housing initiatives across Los Angeles. Under the current measure, properties sold for over $5 million incur a 4% tax, while those priced above $10 million face a 5.5% tax rate. The controversial amendments aimed to reduce the tax burden for recently constructed apartment buildings, shopping centers, and warehouses, representing key areas of concern for business leaders.
Mayor Bass stated the need for additional amendments and technical adjustments as the reason for withdrawing the bill. She plans to reintroduce the legislation in January of the following year. This decision comes after the bill was scheduled for review by the state Assembly’s local government committee, led by State Assemblymember Juan Carrillo, where it was anticipated to face scrutiny from both supporters and detractors.
Throughout the debate, advocates of the proposed amendments expressed hopes to address “unintended consequences” stemming from Measure ULA, which they claim has hindered local housing production. On the other hand, critics argued that broader economic factors, rather than the mansion tax itself, were the key contributors to the noted declines in housing development and availability. This prevailing discourse reflects the contrasting views among various stakeholders regarding the real impacts of the mansion tax on the housing market.
Moreover, the withdrawal coincides with ongoing discussions about a potential statewide ballot measure backed by the Howard Jarvis Taxpayers Association, which aims to limit tax increases in California and could significantly affect the mechanics of Measure ULA. Former state Assembly Speaker Bob Hertzberg indicated that the timing of the legislative session played a critical role in the inability to amend the bill before its scheduled voting.
Proponents of Measure ULA have criticized the last-minute changes proposed in the new bill, claiming such alterations threaten to undermine the original intent of the measure. They also warned that reducing the tax framework could lead to a potential 30% decrease in revenue generated by Measure ULA, which has already raised approximately $830 million since its implementation. However, actual spending on housing initiatives has reportedly been slow, stirring further debate about the efficiency and effectiveness of the current framework.
Business leaders, including representatives from the California Business Roundtable, expressed dissatisfaction with the proposal, regarding it as insufficient to alleviate the economic concerns associated with housing production within the city. Meanwhile, the coalition United to House LA, which played a pivotal role in bringing Measure ULA to the ballot, welcomed the bill’s withdrawal, stressing the critical need for sustained funding aimed at displacement and homelessness prevention initiatives.
In the face of this legislative setback, the bill’s co-authors, Senators Gonzalez and McKinnor, are committed to returning to the proposal in the next legislative session. They aim to foster collaboration with a diverse range of stakeholders to address the intricate challenges surrounding housing and homelessness in Los Angeles.
As evident from this unfolding situation, Los Angeles continues to grapple with the complex interplay between taxation, housing development, and economic imperatives, reflecting broader trends occurring in urban centers across the nation. The future of Measure ULA remains uncertain as stakeholders seek a balanced approach that addresses the immediate needs for housing while considering the economic climate.
Deeper Dive: News & Info About This Topic
HERE Resources
Lawmakers Propose Overhaul of Measure ULA in Los Angeles
Additional Resources
- Los Angeles Times: State bill to overhaul Measure ULA falls apart
- Los Angeles Times: Measure ULA bill
- Los Angeles Magazine: California lawmakers introduce new bill to overhaul L.A.’s mansion tax
- LAist: Los Angeles mansion tax Measure ULA state bill reform
- Los Angeles Times: L.A. offers up $387 million for affordable housing projects
- Wikipedia: Mansion Tax
- Google Search: Measure ULA California
- Google Scholar: California housing taxes
- Encyclopedia Britannica: Mansion Tax
- Google News: Los Angeles housing bill
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
