Measure GS Santa Monica & Measure ULA Los Angeles Transfer Tax FAQ

What Is Measure ULA in Los Angeles?

Measure ULA is an additional city transfer tax that applies to real property sales within the City of Los Angeles above certain price thresholds. It is imposed on top of the existing city transfer tax.

ULA applies only within Los Angeles city limits — not in Santa Monica, Beverly Hills, Malibu, or other independent cities.

When Did Measure ULA Go Into Effect — And What Changed?

Measure ULA became effective April 1, 2023.

What Were the Original Thresholds (2023)?

When it first launched, the tiers were:

• $5,000,000+ → 4% ULA

• $10,000,000+ → 5.5% ULA

Those rates were added on top of the existing 0.45% Los Angeles city transfer tax.

When Did Santa Monica Measure GS Go Into Effect — And Has It Changed?

Measure GS became effective March 1, 2023.

What Were the Original Tiers (2023)?

When it passed, Santa Monica implemented a tiered transfer tax structure:

• Under $5,000,000 → $3 per $1,000 (0.3%)

• $5,000,000–$7,999,999 → $6 per $1,000 (0.6%)

• $8,000,000+ → $56 per $1,000 (5.6%)

Has Measure GS Changed Since Then?

No structural changes have been made to the tiers or rates.

Unlike Measure ULA, Santa Monica’s Measure GS does not include automatic annual inflation adjustments to the thresholds. The $5M and $8M trigger points remain fixed.

Bottom Line

Measure GS has remained the same since March 2023.
The tiers and rates are unchanged, and the thresholds are not indexed annually.

What Are the Thresholds Now?

The thresholds are adjusted annually for inflation every July.

As of the most recent adjustment, the lower tier has increased to approximately $5.3 million, and the upper tier to approximately $10.6 million.

The tax rates (4% and 5.5%) have not changed — only the price thresholds have increased due to inflation indexing.

Bottom Line

ULA started at flat $5M and $10M triggers in 2023.
Today, those triggers are slightly higher due to annual inflation adjustments.

How Much Is the Measure ULA Tax?

• Sales roughly $5M–$9.999M = 4% ULA, bringing total city transfer tax to approximately 4.45%

• Sales $10M+ = 5.5% ULA, bringing total city transfer tax to approximately 5.95%

Once triggered, the rate applies to the entire purchase price — not just the amount above the threshold.

Who Pays Measure ULA?

Customarily the seller pays, but allocation is fully negotiable in the purchase agreement.

Who pays Measure GS Transfer tax in Santa Monica

Typically, the seller pays; however, in real estate everything is negotiable. As long as both parties agree, the buyer can pay depending on how the contract is structured.

Does Refinancing Trigger ULA?

No. ULA applies to transfers (sales), not refinances.

Does Refinancing trigger Measure GS?

No, Measuer GS does not apply to refinancing. Measure GS in Santa Monica applies to the transfer or sale of real property within the city, including land, single-family homes, condos, commercial properties, and multi-unit buildings, when the transaction meets the applicable tax threshold.

Does ULA Apply to Commercial, Multifamily, and Land?

Yes. ULA applies to all real property types within Los Angeles city limits if the sale price meets the threshold:

• Residential

• Commercial

• Multifamily

• Mixed-use

• Vacant land

The tax follows value and ownership transfer, not property type.

Are There Exemptions to Measure ULA?

Exemptions are narrow and primarily apply to:

• 501(c)(3) charitable nonprofits (IRS-recognized public charities, religious, educational, or affordable housing nonprofits)

• Community Land Trusts

• Limited-equity housing cooperatives

• Certain affordable housing entities

• Transfers with no true change in beneficial ownership

Most traditional arm’s-length sales do not qualify.

Can Sellers Structure a Sale to Avoid ULA?

In limited and highly technical situations, structuring may reduce exposure, but strategies are fact-specific and must be reviewed by a real estate attorney and CPA.

Selling Below the Threshold

If total consideration stays below the adjusted threshold, ULA does not apply.
Be cautious — assumed debt, credits, or side consideration can push the value over.

Entity Interest Transfers

Instead of transferring the deed, ownership interests in an LLC or partnership may be transferred.
If structured to avoid a change in control, transfer tax may be avoided — but this is heavily scrutinized.

Subdivision Strategy

Legally subdividing property and selling parcels separately may reduce exposure.
Authorities may collapse transactions under “step transaction” doctrines if pre-planned.

Allocating Value Outside Real Property

Some deals allocate legitimate value to personal property or other assets.
Allocations must reflect defensible fair market value.

Seller Financing Strategy

Lower purchase price combined with favorable financing terms may preserve economics while staying under the threshold — if total consideration truly remains below.

Exempt Buyers

Transfers to qualified nonprofits or government entities may qualify for exemption.

Key Risks of Structuring

• Anti-avoidance doctrines allow the City to combine multi-step transactions.

• Some strategies are untested and may be challenged.

• Reducing ULA exposure may create other tax consequences (property tax reassessment or federal capital gains impact).

There is no simple loophole. Structures must be legitimate, documented, and defensible.

Is Measure ULA Tax-Deductible?

Generally, no.

Measure ULA is a real estate transfer tax — not an income or property tax — so it is not deductible on your federal return as a standard tax deduction.

How Is It Treated?

• It is typically treated as a selling expense, which may reduce your capital gain.

• It is not subject to the $10,000 SALT deduction rules because it’s not an income tax. SALT (State and Local Tax deduction It allows taxpayers who itemize to deduct certain state and local income taxes or property taxes on their federal return, up to a $10,000 annual cap.)

• California generally follows the same treatment.

For Investors or Flippers?

Some may attempt to treat it as a business expense, but that position is aggressive and should be reviewed carefully with a CPA.

Bottom Line

ULA is usually not directly deductible, but it may reduce taxable gain as a selling cost. Always confirm with your tax advisor before filing.

What Is Santa Monica Measure GS?

Measure GS is a tiered real property transfer tax in the City of Santa Monica.

It applies to property sales within Santa Monica city limits.

When Did Measure GS Go Into Effect?

March 1, 2023.

What Are the Santa Monica Transfer Tax Tiers?

• Under $5M = $3 per $1,000

• $5M–$7,999,999 = $6 per $1,000

• $8M+ = $56 per $1,000

How Significant Is the Jump at $8M?

At $8M, the rate increases dramatically to $56 per $1,000, making it one of the highest transfer tax tiers in the region.

Are There Exemptions to Santa Monica Transfer Tax?

Common exemptions may include:

• True gifts (no consideration)

• Certain trust transfers with no change in beneficial ownership

• Court-ordered transfers

• Government-related transfers

Most traditional open-market sales are taxable.

Santa Monica: Does Measure GS Apply to LLC or Entity Sales?

Short answer: Yes — it can.

Santa Monica’s transfer tax (Measure GS) may apply even if no deed is recorded, depending on how ownership changes.

When Does It Apply?

• If more than 50% ownership or control of an LLC, partnership, or corporation changes hands, it may be treated like a property transfer.

• Direct deed transfers of property owned by an entity are always taxable.

• Multiple smaller transfers that add up to a controlling interest can also trigger the tax.

When Might It Not Apply?

• If ownership changes do not result in a shift of majority control.

• Certain internal transfers with no real change in beneficial ownership.

Bottom line: Selling the LLC that owns the property does not automatically avoid Santa Monica transfer tax. If control changes, the tax may apply. Always verify before structuring.

Conclusion for Sellers in Los Angeles and Santa Monica

Transfer taxes at higher price points can materially affect net proceeds. Whether you are selling in Los Angeles under Measure ULA or in Santa Monica under Measure GS, early planning is critical.

Before pricing your property, structuring a deal, or negotiating terms, model the transfer tax impact alongside capital gains and property tax implications.

If you are selling property in Los Angeles or Santa Monica and want a precise net sheet analysis — including transfer tax strategy and negotiation positioning — reach out. Proper planning can significantly affect your bottom line.