Bass Urges City Council to Approve a Limited Exemption From the City’s “Mansion Tax”
Los Angeles Mayor Karen Bass is calling on the City Council to approve a temporary pause to Measure ULA, the city’s controversial “mansion tax”, offering potential relief to Pacific Palisades homeowners recovering from this year’s wildfires, according to a press release from Mayor Karen Bass’ office.
The request, outlined in a letter Bass sent Thursday to the 15-member council, marks the first formal effort at City Hall to modify the voter-approved transfer tax since it took effect in 2023. Bass is asking the council to grant the city’s finance director authority to provide a one-time exemption for affected residents, rather than a citywide suspension.
Bass’s proposal would apply only to residential properties in the Pacific Palisades, including single-family homes, condominiums, and “other residential housing” damaged or destroyed by the fires. The mayor’s office said the measure is designed to accelerate sales and encourage rebuilding, ultimately replenishing city housing stock and generating future ULA revenue once the homes are resold.
Mayor Bass’ letter said, “The successful rebuilding and revitalization of the Palisades is contingent on new homes quickly being built on vacant residential lots and on the timely sale of those lots or of those residences left standing by homeowners who want to leave the area. Many homeowners affected by the fires are long-time residents living on fixed incomes and with much of their life savings tied to the equity in their property.”
Approved by voters in November 2022, Measure ULA established a two-tiered real estate transfer tax on high-value properties to fund affordable housing and homelessness prevention. It applies a 4% tax on sales above $5.3 million and a 5.5% tax on those over $10.6 million.
Since taking effect, the levy has drawn widespread criticism from developers, brokers, and homeowners in upscale neighborhoods like the Palisades, where agents say it has slowed luxury sales and complicated post-disaster recovery.
The mayor’s appeal followed a recent meeting with developer Rick Caruso, founder of Steadfast LA — a nonprofit created to assist rebuilding efforts in fire-affected areas, including Pacific Palisades and Altadena. Caruso, whose organization has advocated for temporary financial relief to speed recovery, has not publicly commented on the mayor’s plan.
It remains unclear whether the City Council will schedule a discussion of Bass’s proposal or how soon action might be taken. If approved, the temporary pause would represent the first adjustment to Measure ULA’s strict provisions since its passage.
Any revision to the tax is expected to face significant pushback. Housing advocates and supporters of Measure ULA have resisted previous attempts to weaken or repeal it, arguing that it is critical to funding the city’s affordable housing and homelessness initiatives.
