Planning to sell a $5 million-plus home or condo in Westwood or Century City? The extra transfer tax known as Measure ULA can change your net by hundreds of thousands of dollars. You want clear answers, not fine print. This guide breaks down what ULA is, the latest thresholds and rates, how it is calculated, and smart steps to protect your proceeds. Let’s dive in.
Measure ULA in plain English
Measure ULA is a City of Los Angeles transfer tax that took effect on April 1, 2023. It applies when real property inside the City of Los Angeles changes hands. Proceeds are earmarked for the city’s House LA programs that target housing and tenant support, according to professional summaries of the ordinance’s design and intent (overview of ULA mechanics).
Where it applies
ULA applies only to property inside the City of Los Angeles. Westwood and Century City are within the city, so sales there are covered. Neighboring cities like Beverly Hills or Santa Monica are not covered by ULA (Century City city context).
Current thresholds and rates
ULA adds an extra transfer tax based on the total sale price:
- 4.0% when the price is above the lower threshold.
- 5.5% when the price is at or above the higher threshold.
The thresholds are indexed and were updated effective July 1, 2025. They are commonly reported as approximately $5,300,000 and $10,600,000. Always confirm the active thresholds for your closing date with escrow or title, or review the County’s documentary transfer tax page for current guidance (Los Angeles County documentary transfer taxes).
How the ULA tax is calculated
ULA is calculated on the full consideration, including any liens. That means the tax is applied from dollar one, not just the amount above the threshold. This structure can create a large tax hit right after you cross the threshold (calculation basis and implications; threshold behavior insight).
Quick examples
Here are simplified illustrations. Your escrow officer should run official numbers for your transaction and date.
Example A: $6,000,000 sale using the 4% tier and typical city and county documentary rates.
- County tax: $6,600.
- City base: $27,000.
- ULA: $240,000.
- Approximate total transfer taxes: $273,600 (plus fees) (county and city taxes background).
Example B: $12,000,000 sale using the 5.5% tier.
- County tax: $13,200.
- City base: $54,000.
- ULA: $660,000.
- Approximate total transfer taxes: $727,200 (plus fees) (combined mechanics and indexing context).
Who pays at closing
The documentary transfer taxes are collected at recording. In practice, who pays is negotiable in the purchase contract, although sellers often cover them. Escrow will calculate the amounts, and you should confirm the allocation with your agent and attorney before going to market (who typically pays and how it is collected).
Exemptions and edge cases to know
- Certain transfers to government entities and qualifying nonprofit or affordable-housing organizations may be exempt, subject to strict rules and procedures. Check the latest city guidance and have counsel verify eligibility (exemptions overview).
- ULA generally applies even if the sale is part of a federal 1031 exchange. Do not assume a like-kind exchange avoids the city tax (1031 and ULA applicability).
Timing, pricing, and deal structure
Sellers often adjust timing or pricing near the thresholds because the tax applies from the first dollar once you cross over. You may see strategic list prices that aim to sit just below the threshold or clear it decisively to avoid renegotiation pressure (threshold behavior explained).
Attorneys and brokers sometimes explore structures like selling entity interests, using tenants-in-common, or separating parcels. These are complex, fact-specific, and can carry legal or administrative risk. Engage tax and legal counsel early and coordinate closely with escrow and any lender (structuring risks and considerations).
Legal status and potential refunds
Measure ULA has faced lawsuits and political challenges. Some were dismissed, while others continue through appeals or policy proposals. If the tax were ever invalidated, sellers who paid may be advised by counsel to file protective refund claims to preserve rights within the required timeframes (lawsuits and refund-claim guidance).
Policy proposals can also emerge that change how local transfer taxes are capped or approved. Stay alert to local reporting for any updates that could affect timing or cost (policy developments to watch).
Westwood and Century City seller checklist
Use this to prepare for a smooth, high-confidence sale.
Confirm jurisdiction and closing date.
- Verify your property is inside the City of Los Angeles and confirm your expected recording date. Thresholds are date-sensitive and may shift on July 1 (current county guidance).
Get an escrow pre-calculation.
- Ask escrow or title to run the city, county, and ULA transfer tax estimates early so you can plan net proceeds and set expectations with buyers.
Model net proceeds scenarios.
- Build side-by-side proceeds at different price points that may cross thresholds. Use conservative assumptions and your escrow estimates for accuracy (combined-rate context).
Negotiate allocation up front.
- Decide in your offer terms who pays the transfer taxes. Many sellers pay, but allocation is negotiable and can influence buyer interest and underwriting (who pays and recording).
Consider structure and bring in counsel early.
- For complex assets or portfolio moves, consult tax counsel on options and risks before you go to market (structuring considerations).
Discuss protective refund claims if applicable.
- If you expect to pay ULA before litigation is fully resolved, ask your attorney whether filing a timely protective claim is appropriate (refund-claim overview).
What this means for your sale
At the $5 million-plus level in Westwood and Century City, ULA is a material line item that can reshape list strategy, negotiation, and net. The right plan includes accurate escrow math, pricing that aligns with the threshold, clear contract language on who pays, and a marketing push that supports your target price. You get the best result when preparation, exposure, and negotiation all work in sync.
If you want a discreet, outcomes-first plan for a high-value sale, connect with Straser Silicon Valley’s white-glove team. We coordinate pricing, turnkey preparation, high-exposure marketing, and disciplined negotiation, and we work hand in hand with escrow and your counsel to keep you protected. Start a confidential conversation with Straser Silicon Valley.
FAQs
Does Measure ULA apply to a $5 million-plus condo in Century City?
- Yes. ULA covers qualifying real property transfers inside the City of Los Angeles, including condos in Century City, unless an exemption applies.
What are the current ULA thresholds and rates?
- ULA is 4.0% above the lower threshold and 5.5% at or above the higher threshold, applied to the full sale price. Thresholds are indexed and were updated effective July 1, 2025. Confirm the numbers for your closing date with escrow or title.
Who usually pays the ULA tax in Los Angeles?
- Payment is negotiable in the contract, but sellers often pay. The tax is collected at recording, and escrow prepares the calculation.
Does a 1031 exchange avoid ULA?
- No. Professional guidance indicates ULA still applies even when a transaction qualifies for federal tax deferral under Section 1031. Plan with tax counsel.
Are there exemptions for nonprofits or affordable housing groups?
- Some transfers to government or qualifying nonprofit and affordable housing entities may be exempt, subject to strict rules and documentation. Have counsel confirm eligibility before relying on an exemption.
