Los Angeles 2022 election: Guide to ballot measures

A homeless camp near Los Angeles City Hall in January. (Gina Ferazzi / Los Angeles Times)

A homeless camp near Los Angeles City Hall in January.

(Gina Ferazzi / Los Angeles Times)

No measure would have a greater impact on the profitability of certain residents or the city’s ability to build housing for the homeless than the Ordinance ULA (which stands for United to House LA) initiative. It would impose a one-time 4% tax on real estate sales over $5 million, rising to 5.5% on transactions over $10 million. A $5 million sale would result in a $200,000 tax bill.

The so-called document acquisition tax would bring in an estimated $600 million to $1.1 billion a year, according to a city analysis, and the proceeds would fund affordable housing, rent subsidies and tenant protection, among other things.

Proponents say this new tax is essential as the city government expects the funds available to build affordable housing to fall sharply in the coming years. Although the measure had the backing of a number of unions, social justice groups and the Times editorial board, none of the mayoral candidates backed it (remember that newsrooms work separately from the editorial board).

Opponents of the tax include the Howard Jarvis Taxpayers Assn., a number of real estate corporations and the editorial board of the Los Angeles Daily News. They say the tax could push up rents and make Los Angeles a harder place to do business, which could cause companies to flee the city. Some also criticize how the proposal is being presented to voters, calling it a “mansion tax” even though most of the revenue would come from the sale of apartment buildings and commercial properties.

In 2019, if that tax were applied, almost half of the proceeds would have come from the sale of commercial real estate and 27% from the sale of multifamily buildings such as apartments, according to analysis by consultant Mike Kahoe. who wrote a paper on the measure for the Center for Jobs & Economy and the California Business Roundtable.

If the voting measure had already been in effect, sales of these two property types would have raised about $690 million, while sales of expensive single-family homes would have raised just over $200 million.

https://www.latimes.com/california/story/2022-10-04/2022-california-election-los-angeles-ballot-measures Los Angeles 2022 election: Guide to ballot measures

Alley Einstein

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