A recent ruling by a Los Angeles County judge has dismissed a lawsuit against Measure ULA, also known as the “mansion tax,” according to the Los Angeles Times. The measure, which was approved by LA voters in November and went into effect on April 1st, aims to generate funds for housing and homelessness-prevention efforts. However, opponents argue that it has had negative effects on the real estate market and development.
The unique scope and scale of Measure ULA includes a 4% charge on all residential and commercial real estate sales above $5 million, with an additional 5.5% charge for sales above $10 million.
Superior Court Judge Barbara Scheper issued her decision after hearing arguments from both sides. She officially dismissed the lawsuit on Tuesday following her tentative ruling made Monday as reported by The Times . Despite this setback for plaintiffs such as Newcastle Courtyards and Howard Jarvis Taxpayers Association who have vowed to appeal the dismissal , their attorney Keith Fromm remains hopeful that higher courts will recognize errors in Judge Scheper’s order.
This article originally appeared on Connect CRE.
