Measure ULA Survived the November Vote: What West Valley Sellers Need to Know Now
Measure ULA Survived the November Vote: What West Valley Sellers Need to Know Now
Does Measure ULA Still Apply After the November 2026 Election?
Measure ULA survived the November 3, 2026 election and remains fully in effect. No ballot measure succeeded in repealing or reforming it. City of LA residential properties selling above $5.4M still face a 4% transfer tax; those above $10.9M face 5.5%. The only new development: Proposition TE passed, creating a narrow exemption for Palisades fire homeowners rebuilding on the same lot — not a general West Valley exception.
The election is over, and Measure ULA won again.
If you’ve been watching the LA ballot hoping for relief before listing your West Valley home at $5M or above, here’s what the November 3, 2026 results mean for you: not a single measure on the City of LA ballot repealed or meaningfully reformed the mansion tax. The 4% and 5.5% transfer tax thresholds are exactly where they’ve been since April 2023 — and for now, they’re staying there.
What Actually Happened on Election Night
LA’s November 2026 ballot included eight City of LA measures. All eight passed. That includes Proposition TE, which grants a narrow transfer tax exemption to homeowners displaced by the January 2025 Palisades and Eaton fires who are rebuilding on the same property they owned before the fire.
Prop TE matters — for fire victims. It does not change anything for the typical luxury seller in Woodland Hills, Encino, Tarzana, or Sherman Oaks.
There was no measure on the November ballot to repeal or suspend ULA for the broader market. The repeal campaigns that emerged in 2024 and early 2026 didn’t reach the ballot in time. Reform advocates are now pointing toward Sacramento — AB-based approaches that could potentially override the City ordinance — but that legislative path has no confirmed timeline or guarantee.
The unchanged numbers
If you’re pricing near the ULA thresholds, here’s exactly where things stand:
- 4% tax applies to City of LA residential properties selling above $5.4M
- 5.5% tax applies to properties selling above $10.9M
The cliff effect is real and sharp. A home that closes at exactly $5.4M triggers roughly $216,000 in ULA transfer tax. A home that closes at $5.39M: zero. For sellers in the $5.2M–$6.5M range, pricing strategy isn’t just about what buyers will pay — it’s about whether you price above or below that cliff.
If you want a full picture of what closing costs and taxes reduce your actual net, this breakdown of seller net proceeds in Woodland Hills walks through the full picture — including ULA, escrow fees, commission, and transfer taxes.
Does ULA Apply to Your Property?
One of the most misunderstood pieces of ULA is geography. It’s a City of Los Angeles tax — not a County tax, not a statewide measure. That distinction matters a lot in the West Valley.
Woodland Hills, Encino, Tarzana, and Sherman Oaks are incorporated into the City of LA. If you own a property in those communities and it sells above $5.4M, Measure ULA applies.
Calabasas is a separate incorporated city. ULA does not apply there.
West Hills is mostly within City of LA boundaries, though the community straddles some edges worth checking. If your sale is above the threshold, confirm your parcel is in the City of LA before assuming any exemption. The easiest check: your LA County property tax bill shows your city jurisdiction. If it says “Los Angeles,” ULA applies.
What Prop TE Actually Means
Prop TE passed November 3 alongside the other seven City of LA ballot measures. It’s meaningful relief — for a specific population.
If you owned a home in the Palisades fire area, your home burned down, you’re rebuilding on that same lot, and the eventual sale of the rebuilt home would trigger ULA — Prop TE creates an exemption for that sale.
If you’re a Woodland Hills or Encino luxury seller who wasn’t affected by the fires, Prop TE is not your exemption. It’s narrowly written for fire victims rebuilding in kind on their original parcel.
Will ULA Be Repealed?
The honest answer: not in the near term.
After the November ballot came up empty on reform, advocacy groups are focusing on Sacramento rather than a City initiative. AB-based legislative approaches could theoretically override a City ordinance, but those paths are slow and contested. The Daily Journal reported in early November that “reform isn’t over” — but that’s a long-game political play, not a signal that anything changes before your next listing appointment.
For background on what ULA is and why it matters for West Valley sellers, that prior breakdown still applies — the mechanics haven’t changed.
Bottom line: plan your sale assuming ULA is in effect. If it gets suspended while your property is in escrow, that’s upside. Building your strategy around a maybe-2027 repeal is a risk most sellers in this price range can’t afford to take.
What to Do Right Now
If you own a West Valley property that could sell above $5.4M, the election results mean it’s time to stop waiting and start planning.
Run your net proceeds with ULA in the model. Don’t just subtract 4% from list price — factor in where the buyer’s offer might land, and what the cliff does to your net at different price points. California capital gains rules also interact with your net, depending on how long you’ve held and your basis.
Price around the cliff strategically. If your home could realistically sell in the $5.3M–$5.6M range, there are real arguments for targeting offers below $5.4M. Your pricing and negotiation strategy should account for that before you list.
Don’t assume a buyer will absorb the tax. Sophisticated buyers in this price range know about ULA. It affects what they’ll offer. Build it into your expectations from day one.
Consider timing. The election answer is now clear: ULA isn’t going anywhere on a 6-month horizon. Sellers who were waiting for November results now have clarity — which may push more luxury inventory to market in early 2027. That’s worth thinking about when you decide when to list.
If you’re working through any of this for your own situation, I’m happy to run the numbers with you. Reach out anytime.
Frequently Asked Questions
Is Measure ULA still in effect as of November 2026?
Yes. Measure ULA was not repealed or suspended by any November 3, 2026 ballot measure. City of LA residential properties selling above $5.4M still face a 4% transfer tax; those above $10.9M face 5.5%. These thresholds are unchanged from when ULA took effect in April 2023.
What is Proposition TE and who does it help?
Prop TE is a November 2026 ballot measure that passed alongside seven other City of LA measures. It creates a narrow Measure ULA exemption for homeowners displaced by the January 2025 Palisades and Eaton fires who are rebuilding on the same property. It does not create a general exemption for other West Valley sellers.
Does Measure ULA apply in Calabasas and West Hills?
Calabasas is a separate incorporated city; ULA does not apply there. West Hills is mostly within City of LA boundaries — check your parcel’s city jurisdiction on your LA County property tax bill. Woodland Hills, Encino, Tarzana, and Sherman Oaks are City of LA; ULA applies at those thresholds.
Could ULA be repealed in 2027 or 2028?
It’s possible but not certain. Reform advocates are now focused on Sacramento legislative approaches rather than a City ballot measure. That path has no confirmed timeline. Plan your sale assuming ULA applies; treat any future change as upside, not a baseline assumption.
What is the cliff effect in Measure ULA?
The cliff effect refers to the sharp jump in tax at the $5.4M threshold. A sale at exactly $5.4M triggers $216,000 in ULA transfer tax (4% × $5.4M). A sale at $5.39M triggers zero. For some sellers, targeting offers below the threshold yields a higher net than accepting an offer above it.
Recent Posts
