How does Measure ULA affect the sale of a Studio City home?

Measure ULA, the Los Angeles Mansion Tax, adds an extra documentary transfer tax of 4 percent on residential sales above its lower threshold and 5.5 percent above its higher threshold. The thresholds started at $5 million and $10 million when Measure ULA took effect on April 1, 2023, and the City of Los Angeles adjusts them each July for inflation. On a Studio City home that sells above the lower threshold, Measure ULA stacks on top of California's Documentary Transfer Tax, the City of LA's existing transfer tax, agent commissions, and standard closing costs, which together reduce your seller proceeds by roughly 8 to 10 percent before any mortgage payoff.