California election officials confirm that the proposed initiative affecting local real estate transfer taxes was withdrawn on June 25, 2026.
The Initiative Was Withdrawn
The proposed statewide initiative commonly discussed as a potential path to repealing Measure ULA will not appear on California's November 3, 2026 ballot.
The measure, identified by the California Secretary of State as initiative 25-0006A1, gathered enough verified signatures to become eligible for the ballot. On June 25, 2026, however, the Secretary of State announced that the proponent withdrew it before certification.
This supersedes earlier reports, including the original version of this article, that focused on submitted signatures and a possible November vote.
What the Measure Would Have Addressed
The official state summary said the proposed constitutional amendment would have raised the approval threshold for certain voter-proposed local special taxes. In charter cities, it also would have restricted real estate transfer taxes beyond the existing state-authorized transfer-tax rate and invalidated noncompliant existing property-related taxes two years after enactment.
Because the initiative was withdrawn, voters will not decide those provisions in November 2026.
What This Means for Measure ULA
The withdrawal does not change current Measure ULA rates or thresholds. For transactions closing after June 30, 2026, the Los Angeles Office of Finance lists a 4% ULA tax for values over $5.4 million but under $10.9 million, and a 5.5% ULA tax at $10.9 million or more. The City's base transfer tax is additional.
Owners evaluating a sale should use current law in their net-proceeds analysis. Delaying a transaction based on an assumed 2026 repeal vote is no longer supported by the official election status.
Practical Next Steps for Owners
- Confirm whether the property is inside the City of Los Angeles
- Use the ULA thresholds applicable to the expected closing date
- Ask tax and legal counsel to review transaction-specific exemptions or structuring issues
- Compare current net proceeds with realistic holding costs and market risks
- Monitor official City and California election sources for future changes
Sources
- California Secretary of State: initiative withdrawn June 25, 2026
- Los Angeles Office of Finance: current Measure ULA thresholds
This article is informational and is not legal, tax, or election advice.