Measure ULA is an LA City transfer tax on real estate sales at $5M+, effective April 2023. Rate: 4% on $5M-$10M sales, 5.5% on $10M+. LA City only — not County, not other cities.
Measure ULA applies on top of existing LA City and County transfer taxes (~0.56% combined). For a $10 million LA multifamily sale, Measure ULA alone is $550,000. Revenue funds affordable housing programs.
The tax is on sale price, not gain. Even a sale at a loss is subject to Measure ULA if price exceeds $5M.
A 1031 exchange does NOT exempt Measure ULA — it defers capital gains but the transfer tax applies anyway.
Measure ULA has shifted some buyer demand from LA City to LA-adjacent jurisdictions (Burbank, Glendale, Santa Monica). $5M+ LA City sellers should factor Measure ULA into net proceeds calculation and consider 1031 replacement outside LA City to avoid future exposure.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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