Voters nearly had a chance to gut the 'mansion tax.' Now, L.A. approves $544 million in spending

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Set us as preferred The Los Angeles City Council on Friday approved a plan to spend $544.3 million collected from Measure ULA, the so-called “mansion tax” that levies a transfer tax on L.A.property sales above $5.3 million.The spending plan, set to be doled out during the 2026 fiscal year, is the largest allocation of Measure ULA funds so far — roughly 28% higher than last year’s budget.

It calls for $381 million toward affordable housing programs and $163.3 million for homelessness prevention programs.The approval arrives on the heels of a legislative challenge that would’ve given L.A.voters the chance to gut the measure on the November ballot.

However, a deal was struck on Wednesday between state lawmakers and the Howard Jarvis Taxpayers Association that will keep the tax intact.The taxpayers association, which has been fighting Measure ULA since it took effect in 2023, organized a measure that would’ve eliminated the mansion tax by capping transfer taxes at 0.11%.It also would’ve require future special tax votes to achieve two-thirds of voter support instead of a simple majority, and retroactively overturn recent tax votes that failed to hit that threshold.

Measure ULA — which only received 58% support — could have been overturned if the measure passed.State lawmakers countered with a bill of their own, which would’ve trimmed the tax’s scope: preserving rates of up to 5.5% for single-family home sales above $5.3 million — mansions — but capping rates at 1.5% for non-mansions — apartment complexes, commercial buildings, etc.However, the bill would only appear on the ballot if the taxpayers association pulled theirs.The taxpayers association refused, instead striking a deal with lawmakers to place an amendment on the ballot that raises the threshold for special taxes to two-thirds voter approval...