LOS ANGELES PASSES NEW TAX ORDINANCE TO TAX THE WEALTHY

Los Angeles has been known for coming up with these wild ideas of special initiatives that they pass under cover of the night.

Yes, this was voted upon; however, it was under the guise of helping the homeless.

Measure ULA, commonly known as the “mansion tax,” would impose a new “Homelessness and Housing Solutions Tax” on transfers of residential and commercial real property in the city of Los Angeles valued more than $5 million.?The revenue raised by the new tax, expected to be between $600?million and $1.1?billion annually, is intended to be used to fund affordable housing and tenant assistance programs.?

Under the measure, sales of residential and commercial real property valued at over $5 million but less than $10?million would be subject to an additional tax at the rate of 4%, while sales of properties valued at $10?million or more would be subject to an additional tax at the rate of 5.5%.?The new tax would apply to the entirety of the sale value, not solely the amount in excess of the $5?million and $10?million thresholds, and regardless of whether the property is sold at a gain or a loss.?

Read that line again- you would have to pay a tax even at a LOSS!

The thresholds would be adjusted each year based on inflation.?The tax would apply to property sales occurring on or after April?1, 2023.

The new tax would be in addition to the existing documentary transfer tax imposed on property sales in the city of Los Angeles, which is imposed at a combined city and county rate of 0.56%.

THE SITUATION:

There are approximately 41,000 unhoused people in Los Angeles. An estimated 63% of households are occupied by renters. Local funding dedicated to affordable housing and tenant programs is limited. The City collects a documentary transfer tax on the sale or transfer of property that funds City services. This measure would establish an additional documentary transfer tax on property valued at over $5 million to fund affordable housing and tenant programs.?

THE PROPOSAL: This citizen-sponsored ballot initiative would:

? Impose a 4% tax on real property sales or transfers valued at over $5 million but less than $10 million;

? Impose a 5.5% tax on real property sales or transfers valued at $10 million or more;

? Annually adjust the property value thresholds based on the Chained Consumer Price Index;

? Exempt certain housing, non-profit, and public entities from the tax;

? Create a permanent tax until repealed by voters;

? Generate approximately $600 million to $1.1 billion annually for existing and new programs;

? Use at least 92% of the revenue for affordable housing and tenant assistance programs administered by the Los Angeles Housing Department, and up to 8% for administration;

? Establish a Citizens Oversight Committee to make funding and program recommendations;

? Establish a Tenant Council to advise on housing matters.?

The Los Angeles Housing Department (LAHD) would have the authority to approve funding of up to $50 million per project without City Council review and approval. The measure would require payment of prevailing wages, and housing developments with 40 or more units would need to comply with certain project labor agreements. If a project results in displacement of a tenant, relocation assistance and right of first refusal for a comparable unit in the development would apply.?

The Homeless Prevention Program would fund resources such as:

? Rental and income assistance;

? Eviction defense and prevention programs;

? Tenant outreach and education;

? Tenant harassment protections;

? A Tenant Council, comprised of tenants and currently homeless individuals living in the City. Members with diverse backgrounds would be appointed by the Mayor, subject to approval of the City Council. The Tenant Council would advise LAHD, the Citizens Oversight Committee, and City Council on activities related to tenant protections and fair housing.?

Howard Jarvis Taxpayers Association REBUTTAL TO THE ARGUMENT IN FAVOR OF INITIATIVE ORDINANCE ULA

DON’T BE FOOLED. TENANTS AND CONSUMERS WILL PAY THIS TAX.

Vote NO on Initiative Ordinance ULA because it isn’t just a 4% tax on “mansions,” it’s a 4% tax on any property in L.A. that sells for more than $5 million. It will make the purchase of apartment buildings more expensive, and that will push housing costs higher as tenants pay this tax through higher rents. It’s also a tax on the sale of supermarkets, restaurants and shopping centers. The cost of living in L.A. is already too high, and Initiative Ordinance ULA will lead to higher prices for consumers.

IT’S NOT ONLY A HUGE TAX HIKE, IT’S A HUGE ‘NEW AND POWERFUL’ BUREAUCRACY.

Vote NO on Initiative Ordinance ULA because it will raise taxes by an estimated $800 million to $1 billion every year, and the money goes to a new bureaucracy run by unelected, unaccountable appointees who claim to be “experts” in homeless housing and services. Los Angeles voters already approved $1.2 billion in borrowed money to build housing for the homeless (Measure HHH) and also approved a county sales tax increase for homeless services (Measure H). These higher taxes have been in effect for five years. The problem of homelessness has only gotten worse, while the money has been wasted on high-salaried bureaucrats and housing costing an astounding average of more than $600,000 per unit.

ANOTHER BLOATED BUREAUCRACY BUT NO PLAN TO FIX HOMELESSNESS.

Vote NO on Initiative Ordinance ULA because we’re already paying for one bloated and inefficient bureaucracy, the Los Angeles Homeless Services Authority. This measure creates another one! It would have a 13-member governing board plus a tenant council, but none of the members of the board would be representatives of taxpayers’ interests. Just the administrative costs for this new bureaucracy would be $640 million over ten years! And there’s no plan to fix homelessness.

NOT ONE PENNY CAN BE SPENT TO HELP GET PEOPLE OFF THE STREETS RIGHT NOW.

Vote NO on Initiative Ordinance ULA because it does not allow any of the money from this tax increase to be spent on emergency shelters or temporary housing. This tax is NOT a plan to fix homelessness. It is a plan to help a select few developers and homeless service organizations take control of all the money from a tax increase on real estate sales. Can you guess who paid to collect the signatures to put this measure on the ballot? VOTE NO ON INITIATIVE ORDINANCE ULA. Arguments printed on this page are the opinions of the authors and are not checked for accuracy by any City agency.

So here are my two cents??????

As a person born and raised in Los Angeles and a Realtor, I have seen this story before.

Los Angeles voters already approved $1.2 billion in borrowed money to build housing for the homeless (Measure HHH) and approved a county sales tax increase for homeless services (Measure H). These higher taxes have been in effect for five years. The problem of homelessness has only gotten worse, while the money has been wasted on high-salaried bureaucrats and housing costing an astounding average of more than $600,000 per unit.

Notice how this program also would fund eviction defense and prevention programs. Los Angeles already has the most potent renters' rights in the country. I know; it took me almost a year to evict someone from one of my properties a few years ago. Yes, you read that correctly; almost an entire year!

No one wins in this scenario, folks; only the lawyers do!

Yes, I understand people will say, well, if you have all that money, you should pay, but WHY? Did the person that may have bought that property to begin with also works hard with blood, sweat, and tears to buy a property because of the real estate market in Los Angeles? It went up, and they are now entitled to that profit, not the city, which comes up with these new tax gimmicks every Monday, Wednesday, and Friday.

Another critical factor is that this is just the beginning of their plans. You see, they will start with properties at 5 million and above. However, what won't make them stop at that? What about the next tier, let's say 1 to 5 million? Don't you think they can go after those people as well? Well, why not?

This is all just a redistribution of wealth happening in California and Los Angeles. They are eliminating the middle class in the state. There will only be the ultra-wealthy and the poor. This is the reason for the mass exodus in the state. By the way, 5 million is almost a typical price point in some areas of Malibu, Santa Monica, Pacific Palisades, and many others because of California's rise in real estate.

I am sharing this news with you about California because I was one who is a leftugee of the state. Meaning I left the state because of my conservative values and saw where the state was heading too.

If any of this resonates with you or someone you know, let's talk, and let me help you find freedom as well as I did.

I have attached the initiative to read all the details and decide for yourself.

Also, thank you to Gibson Dunn for some of the data they provided in this story.

Dave Markowicz

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