The Los Angeles City Council voted 13-1 on Tuesday to put a measure on the November ballot that will ask voters whether homes affected by the Palisades Fire should be exempt from the city’s controversial “mansion tax.”
If passed, the exemption would apply to the sale of homes damaged or destroyed by the fire. The exemption would last until early 2030, five years from the date of the fire.
This could potentially reduce the tax’s revenue up to 6% — or $32 million each year — according to a May 2026 report from the L.A. Housing Department.
How the ‘mansion tax’ works
The “mansion tax,” officially called Measure ULA, is a tiered tax on real estate selling for $5.4 million or more. The tax, which was passed by voters in 2022, funds programs such as rental assistance, eviction defense and affordable housing construction in the city…