Measure ULA and Measure GS will have substantial financial impacts on sellers' profits in Los Angeles and Santa Monica after April 1st & March 1st, 2023.
New Tax Laws
Measure ULA: City of Los Angeles, which will take effect on April 1st, 2023 states that properties sold at $5 million or above will incur an additional 4% tax, and properties sold at $10 million or above will be taxed an additional 5.5%. On a $5 million sale, the transfer tax will increase from $28,000 to $228,000 due at the close of the sale and deducted by escrow regardless if the seller is taking a loss on the property or not. This is for both residential and commercial real estate within the city of LA.
Measure GS: City of Santa Monica, which will take effect on March 1st, 2023 states that properties sold at $8 million or above will be taxed 5.6%.
If you are considering selling your home in Los Angeles or Santa Monica, closing escrow prior to April 1st, 2023 or March 1st, 2023 are critical dates to consider.
