Wondering how Los Angeles’s “mansion tax” actually shows up in Beachwood Canyon? You are not alone. Whether you plan to list a view home or compare luxury options across nearby cities, you want clear facts, not noise. In this guide you will see where the thresholds sit today, how the tax is calculated, and what it realistically means for Beachwood Canyon listings and negotiations. Let’s dive in.
What Measure ULA does
Measure ULA, short for United to House LA, is a voter‑approved real property transfer tax that funds affordable housing and homelessness programs in the City of Los Angeles. The City outlines the program, collections, and uses on its official overview page. You can read that summary on the Los Angeles Housing Department’s site under the ULA program page (official overview).
As of July 1, 2025, the City’s stated thresholds are:
- 4.0% on sales at or above 5,300,000 dollars
- 5.5% on sales at or above 10,600,000 dollars
According to the City’s Office of Finance, once your sale exceeds a threshold, the ULA rate applies to the full sale price, from dollar one. Custom in California is for the seller to pay transfer taxes at closing, but the parties can negotiate this in the purchase contract. See the City’s guidance in the Real Property Transfer Tax and Measure ULA FAQ (City FAQ).
Beachwood Canyon market reality
Most Beachwood Canyon single‑family sales trade below the ULA thresholds. Neighborhood trackers have shown recent median prices roughly in the 1.7 to 2.3 million dollar range, which means the majority of local listings will not trigger ULA.
That said, Beachwood Canyon does see occasional high‑end homes and unique estates. For rare listings expected to clear 5.3 million dollars, ULA becomes a real line item to plan around.
Citywide impacts buyers and sellers should know
Independent researchers and local reporting have documented a measurable reduction in high‑value transactions within the City of Los Angeles after ULA took effect. UCLA and RAND found declines in luxury and multifamily activity compared with nearby cities, and estimated fewer new multifamily units per year within city limits (UCLA Lewis Center report). Local coverage has also noted a chill in luxury sales above the thresholds in Los Angeles relative to nearby cities without the surtax (LA Times coverage).
What this means for you in Beachwood Canyon:
- Direct impact is rare but material for sales above the threshold.
- Indirect effects show up in comps, buyer pool behavior, and negotiation dynamics as high‑value activity shifts across neighborhoods and cities.
A quick net‑proceeds example
Consider a sale at 6,000,000 dollars in the City of Los Angeles. Under the current framework, that price is above the 5,300,000 dollar threshold, so the 4.0% ULA rate applies to the entire 6,000,000 dollars. That creates a 240,000 dollar ULA line item, separate from routine transfer taxes and other closing costs. This scale can change pricing, timing, and how you allocate closing costs in the contract. For definitions and payment customs, see the City’s official FAQ (City FAQ).
Strategies for sellers near or above the threshold
If your Beachwood Canyon home could clear 5.3 million dollars, plan early and negotiate clearly.
- Pricing and comps
- Review recent citywide luxury comps and buyer behavior to understand sensitivity to all‑in closing costs. Citywide dynamics matter for top‑tier listings.
- Contract allocation
- Clarify in writing who pays transfer taxes, including ULA. While sellers typically pay, allocation is negotiable in Los Angeles purchase agreements.
- Timing and escrow
- Build in time for escrow to calculate taxes and confirm any exemption filings. The City processes exemption requests and refunds through formal documentation.
- Exemptions are narrow
- Certain affordable‑housing nonprofits and government transfers can qualify, but you should not assume an exemption. Start with the City’s resources on exemptions (ULA exemptions overview).
- Considered tactics require counsel
- Reporting has described tactics some owners explored to manage exposure, such as timing or ownership structure changes. These approaches have legal and ethical boundaries, so speak with qualified counsel before pursuing anything unusual (Washington Post background).
What buyers should watch
- Cross‑city comparisons
- Some luxury buyers compare Los Angeles neighborhoods with nearby cities that do not impose a similar surtax, which can influence demand for certain price bands in the city (LA Times coverage).
- Negotiation levers
- If a listing sits just above a threshold, you may see pricing adjustments or concessions to address the tax impact.
- Inventory and pipeline
- Researchers link ULA to shifts in multifamily investment and development citywide, which can change long‑term supply trends that touch adjacent Hollywood and Los Feliz markets (UCLA Lewis Center report).
Policy watch and near‑term outlook
- Threshold updates
- The City updates numeric thresholds periodically. Confirm the latest figures before you list or write an offer (City FAQ).
- Litigation and reform discussions
- Industry groups have challenged ULA in court and policy circles continue to debate reforms that could change scope or rates. Track credible updates from stakeholder organizations (AAGLA litigation update).
- Revenue and programs
- City reporting shows hundreds of millions raised in the first two years for housing and tenant resources. Check the City’s two‑year program update for current figures and use of funds (LAHD two‑year update).
Quick checklist
- Confirm if your expected price is below or above 5,300,000 dollars.
- If above, model ULA in your net sheet and discuss allocation in the offer.
- Build timeline for escrow to verify taxes and any exemption documentation.
- Track policy updates that could affect thresholds or scope.
- Compare cross‑city buyer dynamics when setting price or writing offers.
When you want a clear, local read on how to position your Beachwood Canyon home or luxury search, you deserve data and a plan tailored to your goals. For a private strategy session, connect with Carolina Kramer to map your next move.
FAQs
What is Measure ULA and when does it apply in Los Angeles?
- It is a City of Los Angeles transfer tax that applies to sales at or above set thresholds, with current rates of 4.0% at 5,300,000 dollars and 5.5% at 10,600,000 dollars, applied to the full price once a threshold is crossed (City FAQ and LAHD overview).
Will my Beachwood Canyon home sale likely trigger Measure ULA?
- Most Beachwood Canyon sales close far below the thresholds, so ULA will not apply in most cases, though rare high‑end estates that exceed 5.3 million dollars should plan for it.
Who typically pays Measure ULA at closing in Los Angeles?
- Customarily the seller pays transfer taxes, including ULA, but the parties can negotiate the allocation in the purchase agreement as confirmed by the City’s guidance (City FAQ).
How much would ULA be on a 6 million dollar Beachwood Canyon sale?
- At 6,000,000 dollars, the 4.0% rate would equal 240,000 dollars, separate from other transfer taxes and closing costs, because the tax applies from dollar one once the sale exceeds 5,300,000 dollars.
Are there exemptions to Measure ULA for Beachwood Canyon sellers?
- Some transfers involving affordable‑housing nonprofits, community land trusts, limited‑equity co‑ops, and government entities can qualify, but exemptions are specific and documentation‑heavy, so confirm with the City before assuming eligibility (ULA exemptions overview).
How is ULA affecting luxury buyer behavior around Beachwood Canyon?
- Research and reporting indicate fewer high‑value transactions within Los Angeles and some cross‑city substitution by luxury buyers, which can influence demand and negotiation for top‑tier listings in Beachwood Canyon (UCLA Lewis Center report and LA Times coverage).
