The Howard Jarvis Taxpayers Association has submitted 1.2 million signatures to repeal LA's Measure ULA transfer tax. Here's what apartment building owners need to know.
A Major Development for LA Property Owners
The Howard Jarvis Taxpayers Association (HJTA) has submitted approximately 1.2 million signatures to place the Local Taxpayer Protection Act on the November 2026 ballot. This initiative would repeal Measure ULA—the 4-5.5% transfer tax on Los Angeles properties selling above $5.3 million—and prohibit similar taxes statewide.
For multifamily property owners in Los Angeles, this development could significantly impact transaction planning and property values over the next several years.
The Signature Threshold
To qualify for the ballot, the initiative needed approximately 874,000 valid signatures from California voters. With 1.2 million submitted, organizers have built in a substantial cushion to account for invalid signatures—a common occurrence in signature-gathering campaigns.
Assuming the signatures are verified, the measure will appear on the November 2026 ballot for California voters to decide.
Financial Backing
The repeal campaign has attracted significant financial support. According to Politico, business interests and developers contributed $1.7 million to the campaign in a single week. This signals serious institutional commitment to seeing ULA repealed.
2026 is shaping up to be one of the most expensive ballot measure elections in California history, with housing and tax issues driving substantial spending on both sides.
Timeline for Property Owners
If approved by voters in November 2026, the measure would repeal ULA at the end of 2028. This creates a clear timeline for property owners:
- Now through November 2026: ULA remains in effect; monitor campaign developments
- November 2026: Voters decide
- If approved, end of 2028: ULA repealed
For owners of properties valued above $5.3 million who have been holding off on sales due to the 4-5.5% transfer tax burden, this timeline provides visibility for planning.
What This Means for the Market
Current Market Impact
Since ULA took effect in April 2023, transaction volume for properties above the threshold has declined significantly. Many owners have chosen to hold rather than pay the substantial transfer tax, which can add $200,000-$500,000+ to closing costs on larger multifamily buildings.
Potential Market Impact
If the repeal qualifies and appears likely to pass:
- Some sellers may wait: Owners who can hold until 2029 may delay sales
- Buyers may factor in repeal: Negotiations may account for potential tax savings
- Transaction volume could increase: Pent-up supply may come to market after repeal
Opposition Is Organizing
Affordable housing advocates and Los Angeles city officials plan counter-campaigns to defend ULA. The tax was approved by approximately 58% of LA voters in 2022 and funds homelessness initiatives.
Additionally, state legislators may pursue measures to protect ULA or similar taxes if the initiative qualifies. This remains a contested political issue with significant resources on both sides.
The Constitutional Argument
HJTA's initiative is framed as protecting Proposition 13, the landmark 1978 property tax limitation measure. The argument: Measure ULA exploited a legal loophole from a 2017 court ruling that allowed cities to pass special taxes with a simple majority vote rather than the two-thirds supermajority Prop 13 requires.
The Local Taxpayer Protection Act would close this loophole and require future transfer taxes above 0.11% to meet the two-thirds threshold.
What Should Owners Do Now?
If You're Considering Selling
- Run the numbers both ways: Calculate your proceeds with and without ULA
- Consider your timeline: Can you afford to wait until 2029?
- Monitor the campaign: Polling and fundraising will signal likely outcomes
- Consult your advisors: Tax and legal counsel can help with planning
If You're Buying
- Understand current costs: ULA applies to your purchase if above threshold
- Factor potential changes: Future sale may have different tax treatment
- Negotiate accordingly: Both parties should understand the landscape
The Bottom Line
The HJTA signature filing is a significant development, but it's the beginning of a process, not the end. California voters will ultimately decide whether ULA survives, and that vote is still months away.
For now, the best approach is to stay informed, work with qualified advisors, and make decisions based on your specific circumstances rather than speculation about political outcomes.
Have questions about how ULA affects your property? Contact me to discuss your situation.