LA's 'mansion tax' is here to stay, judge rules

LOS ANGELES - A judge dismissed multiple lawsuits challenging the legality of Los Angeles' proposed "mansion tax" measure, ultimately upholding the tax aimed at generating money for affordable housing and combating homelessness.

The lawsuits alleged that the mansion tax violated the state Constitution and the City Charter.

But a judge ruled Tuesday that the suits failed as "a matter of law."

"I am pleased that the will of Los Angeles voters has been upheld and that much needed dollars will continue to fund affordable housing projects and initiatives aimed at preventing homelessness," said LA City Attorney Feldstein Soto.

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The mansion tax measure, also known as Measure ULA or the "Homelessness and Housing Solutions Tax", initially passed with over half of voters supporting the proposal during the Nov. 8 elections.

The measure imposes an additional tax on the sale of any LA city property on or after April 1, 2023 that exceeds $5 million. More specifically, any house sold above $5 million receives a 4% tax and homes sold above $10 million receive a 5.5% tax.

Those taxed funds will then be used for programs to increase affordable housing in the city and prevent homelessness: two issues that LA Mayor Karen Bass has said are crucial areas of focus on during her term in office.

"In order to truly address the homelessness crisis we must also prevent people from falling into homelessness in the first place," said Bass.

Earlier this month, Bass was appointed to the Los Angeles Homeless Services Authority Commission in an effort to "further confront the number one crisis facing our city."

Bass declared a state of emergency on homelessness on her first day in office back in December 2022.