Measure ULA, a new tax law, will take effect on April 1st, 2023
Properties sold $5M to $9.99M will incur an additional 4% tax, and properties sold at $10 million or above will be taxed 5.5%.
This is for both residential and commercial real estate, but incorporated cities such as Beverly Hills and Malibu are not included. At the point of sale, the one-time tax will be deducted through escrow, regardless of whether the seller is taking a loss on the property or not.
Measure GS, a tax law specific to Santa Monica, will take effect on March 1st, 2023. Properties sold at $8 million or above will be taxed 5.6%.
If you are considering selling your home in the city of Los Angeles or Santa Monica, these are crucial dates to consider.