Measure ULA · Seller Tax · City of Los Angeles
Does Measure ULA Apply to a Fire-Damaged Home Sale?
Justin Borges, DRE #01940318 · 12 min read · Updated July 26, 2026
Measure ULA applies based on a City of Los Angeles property's sale price at the time of transfer, not its physical condition, so a fire-damaged home or a cleared lot can still trigger the tax if the price crosses the applicable tier (Measure ULA). No confirmed, City-published wildfire-specific exemption exists as of this writing, and the exact dollar thresholds change every year, so sellers should verify current figures directly with the LA Office of Finance before assuming a number they saw elsewhere still applies.
Sources: LA Office of Finance, Measure ULA program (finance.lacity.gov); figures change annually and must be confirmed directly with the City before relying on any number for a specific transaction.
What You Will Learn
- What Is Measure ULA and Who Does It Apply To?
- How Do the Measure ULA Tax Tiers Work?
- Does Measure ULA Apply If Your Home Was Damaged in a Wildfire?
- Is There a Wildfire Exemption From Measure ULA?
- How Is a Property's Sale Price Determined for Measure ULA?
- Does Measure ULA Apply Outside the City of Los Angeles?
- What Should Sellers Near the Threshold Consider Before Listing?
- Frequently Asked Questions
What Is Measure ULA and Who Does It Apply To?
Measure ULA is a City of Los Angeles transfer tax, charged in addition to the standard county and city documentary transfer tax, that applies to real property sales above two dollar tiers. It took effect April 1, 2023 with initial tiers of $5 million and $10 million (Measure ULA), and those dollar tiers have been adjusted annually since, on a schedule set by the City. Because the exact current thresholds change every year, this article deliberately does not state a specific current dollar figure; confirm the number in effect for your closing date directly at finance.lacity.gov.
The tax applies to any qualifying City of Los Angeles property sale that crosses the applicable tier, whether the seller is an individual homeowner, a trust, an estate, or an investor.
The dollar line moves every July 1. The property's condition never moves it. A fire-damaged lot that sells above the line owes the tax the same as a home in perfect condition.
Justin Borges, CA DRE #01940318How Do the Measure ULA Tax Tiers Work?
Measure ULA uses a two-tier structure for every qualifying Los Angeles sale. A lower rate applies to the portion of a sale that falls between the first and second dollar thresholds, and a higher rate applies once the sale reaches the second, higher threshold. Both tiers are adjusted annually based on a cost-of-living index, effective each July 1, which is exactly why a figure that was accurate last year, or even six months ago, can already be stale (Measure ULA).
| Tier | When It Applies | Where to Confirm the Current Number |
|---|---|---|
| Below Tier 1 | No Measure ULA tax; standard county/city transfer tax still applies | finance.lacity.gov |
| Between Tier 1 and Tier 2 | Lower Measure ULA rate applies to this portion | finance.lacity.gov |
| At or above Tier 2 | Higher Measure ULA rate applies | finance.lacity.gov |
Los Angeles sellers will notice this table intentionally leaves the dollar amounts out. A wrong number on a seven-figure or eight-figure sale is exactly the kind of mistake worth avoiding, and the City is the only authoritative source for the figure in effect on your closing date.
Does Measure ULA Apply If Your Home Was Damaged in a Wildfire?
Measure ULA is based on the sale price of Los Angeles real property at the time of transfer, not on the physical condition of the structure. A fire-damaged home, a partially rebuilt property, or a cleared lot can still trigger the tax if the negotiated sale price crosses the applicable tier, since the ordinance taxes the transaction value, not the building's state of repair.
Some Los Angeles sellers are surprised to learn a damaged property is not automatically treated differently. For Measure ULA purposes specifically, it generally is not, which is exactly why an accurate, current valuation matters before listing a fire-affected property anywhere near either tier.
Is There a Wildfire Exemption From Measure ULA?
No confirmed, City-published wildfire-specific exemption from Measure ULA exists as of this writing. This is a genuinely important distinction to keep separate from wildfire and disaster relief available under a different tax entirely (Proposition 19): that relief lets a wildfire victim transfer their property's base year assessed value to a replacement home, which affects ongoing annual property taxes, not the one-time Measure ULA transfer tax charged on a sale.
Sellers of fire-affected Los Angeles property should not assume a Measure ULA exemption applies because of the fire. Confirm current exemption categories directly with the LA Office of Finance before relying on that assumption in a listing or closing decision.
How Is a Property's Sale Price Determined for Measure ULA?
Measure ULA is generally calculated on the total consideration paid for a Los Angeles property, which can include cash, assumed debt, and certain other non-cash consideration, not solely the number printed on the purchase agreement's first page. A transaction structured with unusual terms, seller financing, or bundled non-real-property assets should be reviewed carefully before assuming which figure the tax applies to.
Sellers whose expected sale price sits close to either tier should have a tax professional or real estate attorney review the actual transaction structure well before closing, not after escrow has already opened.
Does Measure ULA Apply Outside the City of Los Angeles?
No. Measure ULA is a City of Los Angeles ordinance and applies only to real property located within the city's own boundaries. A comparable property in unincorporated Los Angeles County, or in a separately incorporated city such as Pasadena, Glendale, Burbank, or Alhambra, is not subject to Measure ULA at all, though the standard county documentary transfer tax and, in some cities, an additional local transfer tax may still apply.
Los Angeles buyers and sellers comparing a City listing against a similarly priced home just outside the city line should keep this distinction in mind. The address, not the county, decides whether Measure ULA is even in play.
What Should Sellers Near the Threshold Consider Before Listing?
- Get a current, written valuation early. Know where your likely sale price falls relative to both tiers before you list, not after an offer arrives.
- Confirm the year's current thresholds directly. Check finance.lacity.gov, not a blog post or a number a friend mentioned, since the figures move every July 1.
- Ask about total consideration, not just price. Assumed debt and non-cash terms can affect the number Measure ULA is calculated against.
- Loop in a tax professional early. A CPA or real estate attorney should review any transaction structure well before you are locked into escrow terms.
None of this changes what Measure ULA actually requires (Measure ULA). It just makes sure a Los Angeles seller is planning around the real, current number instead of a stale one.
Frequently Asked Questions
What is Measure ULA and who does it apply to?
Measure ULA is a City of Los Angeles transfer tax, in addition to the standard county and city documentary transfer tax, that applies to real property sales above two adjustable dollar tiers. It took effect April 1, 2023 with initial tiers of $5 million and $10 million, and the exact dollar tiers are adjusted annually, so current figures must be confirmed directly with the LA Office of Finance.
How do the Measure ULA tax tiers work?
Measure ULA uses two tiers: a lower rate applies to the portion of a sale between the first and second threshold, and a higher rate applies once a sale reaches the second, higher threshold. Both the dollar thresholds and, per some reporting, the applicable rates are adjusted on a schedule set by the City, so sellers should verify current figures at finance.lacity.gov rather than relying on a number seen elsewhere.
Does Measure ULA apply if your home was damaged in a wildfire?
Measure ULA applies based on the sale price of City of Los Angeles real property at the time of transfer, regardless of the property's condition. A fire-damaged home or a cleared lot can still trigger Measure ULA if the sale price crosses the applicable threshold, since the tax is based on transaction value, not on the property being move-in ready.
Is there a wildfire exemption from Measure ULA?
No confirmed, City-published wildfire-specific exemption from Measure ULA exists as of this writing. Sellers of fire-affected Los Angeles property should confirm current exemption categories and any wildfire-related relief directly with the LA Office of Finance before assuming one applies.
How is a property's sale price determined for Measure ULA?
Measure ULA is generally based on the total consideration paid for the property, which can include cash, assumed debt, and certain non-cash consideration, not just the stated purchase price on a single document. Sellers near a threshold should have their transaction structure reviewed by a tax professional before closing.
Does Measure ULA apply outside the City of Los Angeles?
No. Measure ULA is a City of Los Angeles ordinance and applies only to real property located within the city's boundaries. A comparable property in an unincorporated Los Angeles County area or a separately incorporated city, such as Pasadena or Glendale, is not subject to Measure ULA, though standard county and city transfer taxes may still apply.
Not Sure Where Your Sale Falls?
Get a free, current valuation before you list, so you know where your property stands relative to the tiers in effect this year.
Get a Free Property Valuation →
Related Resources
Ready to Plan Around the Real Numbers?
Whether your Los Angeles property is fire-affected or you are simply near a Measure ULA tier, a no-pressure conversation and a current valuation are the right first step.
- Licensed CA REALTOR since October 2013, DRE #01940318
- $200M+ closed, 106% average list-to-sale ratio
- Helps sellers plan around Measure ULA with current, verified figures
Call (213) 262-5092 with questions about Measure ULA or a fire-affected property sale.
