Ninth Circuit to Hear Challenge to L.A.’s Failing ‘Mansion Tax’

The U.S. Court of Appeals for the Ninth Circuit has agreed to hear a challenge to Measure ULA, a November 2022 referendum in Los Angeles to tax high-end property sales to fund affordable housing that has fallen short of its goals.

As Breitbart News reported in early 2023, Measure ULA, requires the city “to collect a 4% tax on sales over $5 million, and a 5.5% tax on sales of property worth $10 million or more.” It was supposed to bring in $900 million annually.

Thus far, Measure ULA has only raised $252.9 million, according to the city controller, therealdeal.com reports. One problem: wealthy homeowners rushed to sell before the tax took effect last April. High interested rates have also hurt.