Measure ULA Tax Impact Faced Renewed Scrutiny
Los Angeles business owners and real estate operators continue to grapple with high transfer tax levies.
Updated on Sept. 20, 2026 in Remote Work
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Real estate operator Jason Oppenheim has challenged city housing policy in a new interview with mayoral candidate Nithya Raman. The discussion highlighted concerns surrounding Measure ULA, a tax that has collected $1.4 billion since its 2023 inception.
Why it matters
The tax structure significantly alters capital deployment and transaction costs for Los Angeles commercial and residential real estate operators. While substantial funds have been collected, the absence of completed housing units remains a central point of debate for stakeholders.
Since Measure ULA took effect in 2023, the city has collected $1.4 billion in total tax revenue through August 2026. The mandate currently levies a 4 percent tax on transactions between $5.4 million and $10.9 million, increasing to 5.5 percent for deals exceeding $10.9 million.
The players
Jason Oppenheim
The president of the Oppenheim Group, a high-end real estate brokerage firm operating in the luxury Los Angeles market.
Nithya Raman
A member of the Los Angeles City Council and current candidate for mayor focused on urban housing and development policy.
Rick Caruso
A prominent real estate developer and former mayoral candidate involved in city infrastructure and recreation projects.
Karen Bass
The current Mayor of Los Angeles overseeing citywide regulatory implementation and municipal construction initiatives.
The details
The tax mechanism applies to high-value real estate transactions, directly impacting the margin calculations for developers and investors in Los Angeles. During the discussion at Oppenheim Group headquarters, the candidate noted that previous efforts to create tax carveouts for properties damaged by natural disasters have not yet been implemented. Operators must navigate these costs while the city assesses the allocation of the $1.4 billion fund toward future construction projects.
Timeline
January 2025: A fire damaged the Pacific Palisades recreation center.
August 2026: Total ULA tax collection reached $1.4 billion.
September 15, 2026: Jason Oppenheim released the interview with Nithya Raman.
September 15, 2026: Rick Caruso and Karen Bass celebrated the recreation center groundbreaking.
November 2026: The Los Angeles mayoral general election is scheduled to occur.
Market Landscape
Measure ULA remains a focal point in the Los Angeles real estate market, functioning as a significant regulatory burden on property transactions. This development follows a pattern of heightened political engagement by industry leaders regarding the practical application of municipal transfer taxes.
Commercial property operators should factor the 4 to 5.5 percent transfer tax into all mid-to-high-range transaction pro formas. Monitor the outcome of the November 2026 election, as potential shifts in mayoral administration may influence future tax exemptions or allocation protocols.
The takeaway
The sustained absence of completed housing projects funded by the ULA tax highlights a critical gap between policy revenue and operational output. Operators should track the allocation of these funds in upcoming city budget filings to anticipate whether new development exemptions will be established.
Further reading
For broader trends in local office and commercial property management, see Remote Work.
Source note: This article includes information reported by The Real Deal New York.
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