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Measure ULA Challenged in Federal Appeals Court  

3d render of reflective tax pie chart

Last year, Newcastle Courtyards had their federal court case dismissed after arguing that Measure ULA misrepresented itself to voters by suggesting only mansions would be taxed.

Newcastle Courtyards has just requested that the US Court of Appeals for the Ninth Circuit review and reverse the federal judge's decision to dismiss this case. The reality is the ULA has been a tax impacting more than just “mansions” and is not meeting the promise sold to voters.

What You Need to Know  

Measure ULA taxes big sales of commercial and residential properties over $5 million. Newcastle Courtyards thinks the law's language tricked voters because it's not just hitting the "super-rich"—it's also affecting smaller properties like small apartment buildings and "mom-and-pop" local businesses.

Supporters of Measure ULA thought it would bring in $900 million every year for building affordable housing, but it's only made $181.6 million in its first year. 

How it Impacts You  

This tax not only affects how buyers and sellers plan their investments and finances, but how banks assess value. While not at all considering properties sold at a loss. 

This impact has led to an anemic local real estate market and slowed transactions to a trickle. 

The outcome of this fight will influence where people invest money in the future, not just in Los Angeles but elsewhere, too. 

Stay Connected  

As the court deliberates and advocacy efforts continue, stakeholders must remain informed and engaged in shaping the future of property taxation.

Our other path to fighting back against ULA will be to support the Taxpayer Protection and Government Accountability Act (TPA), which would restore and enhance taxpayer protections in California. 

  • It would require voter approval for new or increased state taxes.  
  • Mandates clear descriptions of taxes on official ballot summaries to ensure transparency.   
  • Would allocate local property tax revenues to support local services  
  • Creates a "look-back" provision to taxes passed after October 2021. Taxes passed after that date that fail to meet the TPA requirements must be re-submitted to voters, like Measure ULA.   

You can subscribe to campaign updates directly here. We will continue to monitor progress in the courts and at the ballot.

Please stay connected with us at BOMA on the frontline for the latest news impacting members. 

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