Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ (#5) · Issues · Geraldo Shapcott / tsiligirisrealestate

Real Residential Or Commercial Property Transfer Tax And Measure ULA FAQ

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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 after June 30, 2025, the brand-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 examined a 4% tax and deals $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 frequently is the City's genuine residential or commercial property transfer tax used?

The City's genuine residential or commercial property transfer tax is relevant on all files that communicate 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 opportunity of offering a real 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 communicated.

Does the City impose a genuine residential or commercial property transfer tax aside from the unique tax imposed under Measure ULA?

Yes, the City imposes a genuine residential or commercial property transfer tax on all documents that communicate genuine residential or commercial property within the City. Today tax (" Base Tax") is computed based on the factor to consider or worth of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") imposes 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 fund economical housing tasks and offer resources to renters at danger of homelessness. The ULA Tax is troubled all files that communicate real residential or commercial property within the City of Los Angeles when the consideration or value of the real residential or commercial property interest conveyed goes beyond a limit of 5 million dollars, or is ten million dollars or higher, 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 elements 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 conveyed at $10,300,000 or more (" ULA Rates").
- The specific language for the 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 every single $500 or fractional part thereof. A transfer in which the worth of the residential or commercial property conveyed is not divisible by $500 will be rounded up to the nearby $500 for the computation of the Base Tax. This does not use to the ULA Rate calculations, which are percentage-based.

When did the ULA Tax enter into effect?

The ULA Tax is applicable to certified conveyances of genuine residential or commercial property interests that happen 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 applying the ULA Tax is modeled on the ownership modification rules under of Equalization residential or commercial property tax rule 462.260 for all documents based on the City's genuine residential or commercial property transfer tax. If a modification of ownership happened before April 1 however is received by the county for recording on or after April 1, 2023, the taxpayer will need to supply proof of the real deal date to reveal that it really occurred before the April 1, 2023 efficient date of the ULA Tax.

Will the worth limits under the ULA Tax be adjusted every year?

Consistent with the Measure ULA, the value limits of when to apply the ULA Tax and its corresponding rates are adjusted yearly based on the Bureau of Labor Statistics Chained Consumer Price Index.

How will the City's real residential or commercial property transfer tax be used to residential or commercial properties that are located partly within the borders of the City?

The genuine residential or commercial property transfer tax will be applied in percentage to the value of the real residential or commercial property interest that was moved within the limits of the City. If a valuation of the genuine residential or commercial property interest isn't readily available, the real residential or commercial property transfer tax should be used based upon the square video of the residential or commercial property within the borders of the City, as a proportion of the overall consideration or value of the real residential or commercial property interest communicated.

How will the City manage over payments or under payments of the genuine residential or commercial property transfer tax?

If the City, through its compliance procedure, determines a prospective over payment or under payment, the City will notify the parties to the deal of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will require to file a request 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 get an invoice for the unsettled balance.

Are there any exemptions for the ULA Tax?

Yes, Measure ULA does supply exemptions for the ULA Tax. The ULA Tax will be not be applicable on files that convey 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 Neighborhood Land Trust, or Limited-Equity Housing Cooperative that has a history of inexpensive housing advancement and/or affordable housing residential or commercial property management experience.
- A limited partnership or restricted liability company in which a recognized 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a general partner or handling member and such 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative has a history of budget friendly housing development and/or cost effective housing residential or commercial property management experience, or such limited partnership or limited liability company consists of a partner or member, respectively, that has a history of economical housing development and/or economical housing residential or commercial property management experience.
- A neighborhood land trust or limited-equity housing cooperative partnering with an experienced non-profit company.
- A neighborhood land trust or limited-equity housing cooperative that does not show a history of affordable housing development and/ or economical 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 ask 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 determination letter classification letter at least ten years prior to the transaction and has properties of less than $1 billion.
- The United States or any company or instrumentality thereof, any state or territory, or political neighborhood thereof, or any other federal, state or regional public agency or public entity.
- Any entity or firm exempt from the City's tax 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 local, state, or federal laws and guidelines.
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To request a decision 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 revealing the reliable date of the exemption status.
- Newest Form 990 or most recent audited financial statements.
Once the proper documents has been offered and a determination of exemption has been made, the Office of Finance will offer a letter certifying that deals 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 consequently believes it gets approved for an exemption, they will need to file a refund claim utilizing the form kept in mind above.

Is the exact same procedure utilized to figure out the Base Tax and the ULA Tax?

For the Base Tax, it is determined based on net worth of the residential or commercial property conveyed (unique of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is computed based on gross worth (including the worth of any lien or encumbrance remaining thereon at the time of sale.)

If the buyer is presuming the seller's loan, is the assumed loan amount excluded from the value of the residential or commercial property communicated?

For the Base Tax, it is computed based on net value (exclusive of the presumed loan quantity.) For the ULA Tax, it is calculated based upon gross value (including the assumed loan amount.)

If you have any questions regarding 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

Customer Care 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 three areas throughout the City
of Los Angeles to finest service your requirements in addition to a brand-new virtual public counter. Click on this link for additional information. 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.krakow-apartments.com

[arvadacolorado.com](http://www.arvadacolorado.com/Apartments.html) Received a Notice of Non-Compliance?
 
Renewal Deadlines, Forms and Online Services
 
Fire Permit
 Police Permits
 Tobacco Permits
 
About the 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
 
Debt Collector 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 
 Sales Price Calculate tax 
 Tax Due 
 Effective for deals closing after June 30, 2025, the brand-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 examined a 4% tax and deals $10,600,000 and up will be assessed a 5.5% tax. 
 - Link to United to House LA (ULA) Dashboard (Los [Angeles Housing](https://preconcentral.com) Department).
 - Link to Source Data 
 
How frequently is the City's genuine residential or commercial property transfer tax used? 
 The City's genuine residential or commercial property transfer tax is relevant on all files that communicate 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 opportunity of offering a real 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 communicated. 
 Does the City impose a genuine residential or commercial property transfer tax aside from the unique tax [imposed](http://www.spbrealtor.ru) under Measure ULA? 
 Yes, the City imposes a genuine residential or commercial property transfer tax on all documents that communicate genuine residential or commercial property within the City. Today tax (" Base Tax") is computed based on the factor to consider or worth of the genuine residential or commercial property interest conveyed at a rate of 0.45%. The unique tax under Measure ULA (" ULA Tax") imposes 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 fund economical housing tasks and offer resources to renters at danger of homelessness. The ULA Tax is troubled all files that [communicate real](https://www.defclarea.org) residential or commercial property within the City of Los Angeles when the consideration or value of the real residential or commercial property interest conveyed goes beyond a limit of 5 million dollars, or is ten million dollars or higher, respectively. 
 What are the rate parts of the [Base Tax](https://donprimo.ph) and the ULA Tax under the City's real residential or commercial property transfer tax? 
 The rate elements 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 conveyed at $10,300,000 or more (" ULA Rates").
 - The specific language for the 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 every single $500 or fractional part thereof. A transfer in which the worth of the residential or commercial property conveyed is not divisible by $500 will be rounded up to the nearby $500 for the computation of the Base Tax. This does not use to the ULA Rate calculations, which are percentage-based. 
 When did the ULA Tax enter into effect? 
 The ULA Tax is applicable to certified conveyances of genuine residential or commercial property interests that happen 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 applying the ULA Tax is modeled on the ownership modification rules under of Equalization residential or commercial property tax rule 462.260 for all documents based on the City's genuine residential or commercial property transfer tax. If a modification of ownership happened before April 1 however is received by the county for recording on or after April 1, 2023, the taxpayer will need to supply proof of the real deal date to reveal that it really occurred before the April 1, 2023 efficient date of the ULA Tax. 
 Will the worth limits under the ULA Tax be adjusted every year? 
 Consistent with the Measure ULA, the value limits of when to apply the ULA Tax and its corresponding rates are adjusted yearly based on the Bureau of Labor Statistics Chained Consumer Price Index. 
 How will the City's real residential or commercial property transfer tax be used to residential or commercial properties that are located partly within the borders of the City? 
 The genuine residential or commercial property transfer tax will be applied in percentage to the value of the real residential or commercial property interest that was moved within the limits of the City. If a valuation of the genuine residential or commercial property interest isn't readily available, the real residential or commercial property transfer tax should be used based upon the square video of the residential or commercial property within the borders of the City, as a proportion of the overall consideration or value of the real residential or commercial property interest communicated. 
 How will the City manage over payments or under payments of the genuine residential or commercial property transfer tax? 
 If the City, through its compliance procedure, determines a prospective over payment or under payment, the City will notify the parties to the deal of the prospective overpayment or underpayment. In cases of overpayment, taxpayers will require to file a request 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 get an invoice for the unsettled balance. 
 Are there any exemptions for the ULA Tax? 
 Yes, [Measure](https://muigaicommercial.com) ULA does supply exemptions for the ULA Tax. The ULA Tax will be not be applicable on files that convey 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 Neighborhood Land Trust, or Limited-Equity Housing Cooperative that has a history of inexpensive housing advancement and/or affordable housing residential or commercial property management experience.
 - A [limited partnership](https://pointlandrealty.com) or restricted liability company in which a recognized 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative is a general partner or handling member and such 501( c)( 3) not-for-profit corporation, community land trust, or limited-equity housing cooperative has a history of budget friendly housing development and/or cost effective housing residential or commercial property management experience, or such limited partnership or limited liability company consists of a partner or member, respectively, that has a history of economical housing development and/or economical housing residential or commercial property management experience.
 - A neighborhood land trust or limited-equity housing cooperative partnering with an experienced non-profit company.
 - A neighborhood land trust or limited-equity housing cooperative that does not show a history of affordable housing development and/ or economical housing [residential](https://blue-shark.ae) 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 ask 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 determination letter classification letter at least ten years prior to the transaction and has properties of less than $1 billion.
 - The United States or any company or instrumentality thereof, any state or territory, or political neighborhood thereof, or any other federal, state or regional public agency or public entity.
 - Any entity or firm exempt from the [City's tax](https://seedrealty.in) 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 local, state, or federal laws and guidelines.
 
The Office of Finance administers demands for ULA tax exemptions under LAMC Section 21.9.15. To request a decision 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 revealing the reliable date of the exemption status.
 - Newest Form 990 or most recent audited financial statements.
 
Once the proper documents has been offered and a determination of exemption has been made, the Office of Finance will offer a letter certifying that deals 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 consequently believes it gets approved for an exemption, they will need to file a refund claim utilizing the form kept in mind above. 
 Is the exact same procedure utilized to figure out the Base Tax and the ULA Tax? 
 For the Base Tax, it is determined based on net worth of the residential or commercial property conveyed (unique of the value of any lien or encumbrance remaining thereon at the time of sale.) For the ULA Tax, it is computed based on gross worth (including the worth of any lien or encumbrance remaining thereon at the time of sale.) 
 If the buyer is presuming the seller's loan, is the assumed loan amount excluded from the value of the residential or commercial property communicated? 
 For the Base Tax, it is computed based on net value (exclusive of the presumed loan quantity.) For the ULA Tax, it is calculated based upon gross value (including the assumed loan amount.) 
 If you have any questions regarding the ULA Tax, please contact finance.ula@lacity.org or (213) 635-7277. 
 Office of Finance 
 Office of [Finance Special](https://propcart.co.ke) Desk Unit
200 North Spring Street, Room 101
Los Angeles, CA 90012 
 Customer Care 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](https://movingsoon.co.uk).CustomerService@lacity.org!.?.! Office Locations The Office of Finance has three areas throughout the City of Los Angeles to finest service your requirements in addition to a brand-new virtual public counter. Click on this link for additional information. Popular Online Services Register Business Tax Registration Certificate( BTRC). Non-Profit Exempt Business Tax Registration
 Certificate Renew Annual Business Tax Renewal.
[Annual Police](https://lebanon-realestate.org) Alarm Permit. Annual Tobacco Permit. Monthly Commercial Cannabis Tax Renewal. Monthly Parking Occupancy Tax. Monthly Transient Occupancy Tax Pay Online Bill Pay Other [Services](https://premiergroup-eg.com) Get Paperless Statements.
Penalty Waiver Request.
Public Records Request. Refund Request
 . Whistleblower Program © Copyright 2025 City of Los Angeles
 . All rights booked.[krakow-apartments.com](http://www.krakow-apartments.com/)