Eyeing a home in Westlake or Pasadena? One tax can change your closing costs by tens or even hundreds of thousands of dollars at higher price points. You want a clear answer on where Measure ULA applies and how it affects your budget. In this guide, you will see side‑by‑side numbers, simple rules, and a buyer checklist so you can plan with confidence. Let’s dive in.
Measure ULA basics
Rates and thresholds
Measure ULA is a City of Los Angeles real property transfer tax that funds housing and homelessness programs. It applies when the sale price crosses set thresholds and is charged on the entire price, not just the amount above the threshold. The City’s program page explains the framework and inflation indexing, and legal summaries confirm that ULA is applied to the full consideration. See the City’s Measure ULA program page and this legal summary on ULA mechanics.
- Tax tiers often cited: 4 percent above the lower threshold, 5.5 percent at or above the higher threshold. Thresholds are indexed for inflation. Always confirm the threshold that applies to your closing date on the City site.
Where ULA applies
ULA only applies to property inside the City of Los Angeles. Westlake is a neighborhood within the City of Los Angeles, so qualifying Westlake sales are subject to ULA. You can confirm Westlake’s city location on Westlake’s reference page and verify current ULA rules on the City’s program page.
How it stacks with other taxes
ULA is in addition to the regular transfer taxes. In Los Angeles County, there is a county documentary transfer tax of 0.11 percent and, inside the City of Los Angeles, a base city transfer tax of 0.45 percent. When ULA applies, it is layered on top of those amounts, which can bring the total to roughly 4.56 percent at the 4 percent tier and about 6.06 percent at the 5.5 percent tier. For details, see this legal summary on ULA and transfer tax stacking.
Westlake: What it means for you
When it applies in Westlake
Since Westlake sits within Los Angeles city limits, your purchase will trigger ULA if the sale price exceeds the applicable threshold for your closing date. The City publishes guidance on thresholds, effective dates, and administration. Review the latest information on the City’s Measure ULA page.
Who pays and how to budget
Transfer taxes are typically allocated by contract, and local custom can vary. In practice, buyers and sellers negotiate responsibility, then escrow collects and remits the amounts at recording. Clarify the split in your purchase agreement and ask escrow for a written estimate. For an overview of how parties often allocate transfer tax, see this summary on who pays transfer tax in California.
Dollar examples in Westlake
Below are simple illustrations that combine county tax, City of Los Angeles base tax, and ULA. Exact amounts come from escrow based on the recorded price and date.
- Example A, $3,000,000 sale, below ULA threshold: about 0.56 percent total → $16,800.
- Example B, $7,000,000 sale, in the 4 percent tier: about 4.56 percent total → $319,200.
- Example C, $12,000,000 sale, in the 5.5 percent tier: about 6.06 percent total → $727,200.
These figures show the step up once ULA applies. Build this into your offer strategy and closing funds.
Pasadena: Lower transfer‑tax load
What you pay in Pasadena
Pasadena is a separate city. Measure ULA is a City of Los Angeles tax and does not apply in Pasadena. Most Pasadena sales pay only the Los Angeles County documentary transfer tax of 0.11 percent, unless and until Pasadena adopts a separate city tax. See the County’s guidance on documentary transfer taxes.
Dollar examples in Pasadena
- $3,000,000 sale: 0.11 percent → $3,300.
- $7,000,000 sale: 0.11 percent → $7,700.
- $12,000,000 sale: 0.11 percent → $13,200.
Compared with Westlake, Pasadena buyers generally see a much smaller transfer‑tax line item at closing for the same price point.
Exemptions and special cases
Some transfers may qualify for administrative exemptions, such as certain affordable‑housing nonprofits, government entities, or other limited categories set by ordinance. Eligibility and documentation are handled through the City’s process. Review the City’s ULA exemptions page and begin early if you may qualify.
For 1031 exchanges and other complex transactions, ULA has been interpreted to apply and is calculated on gross consideration. Escrow and title typically compute based on the full price. See this overview of ULA treatment and special cases.
Market and legal notes
City materials describe how ULA revenues are directed to housing programs with public oversight. Stay current by checking the City’s Measure ULA page.
Litigation has challenged ULA since adoption. A Los Angeles County Superior Court judge dismissed key challenges in 2023, and the measure has remained in force while appeals proceeded. If you are closing soon, verify the latest status and any refund protocols with escrow and the City’s office. See reporting on a key ruling in the Los Angeles Times and the City’s transfer tax and ULA FAQ.
Buyer checklist
- Confirm jurisdiction. For Westlake, verify the parcel is inside Los Angeles city limits. For Pasadena, confirm city limits and whether any city tax applies. Use escrow’s parcel verification and the County’s documentary tax guidance.
- Get a written transfer‑tax estimate. Ask escrow to show county tax, City of LA base tax, and ULA if in Westlake. Use your anticipated closing date to match the correct thresholds from the City’s ULA page.
- Decide who pays in the contract. Negotiate the split and have escrow reflect it. For context on common practices, review this summary of who pays transfer tax.
- Explore exemptions early if relevant. If you are an eligible nonprofit or similar entity, start the City’s exemption process before escrow is opened.
- Confirm special cases. For exchanges, entity transfers, or distressed sales, ask escrow and counsel to confirm ULA treatment in writing.
Bottom line for buyers
If you buy in Westlake and your price exceeds the ULA threshold, your transfer‑tax costs can rise sharply because ULA stacks on top of county and city taxes. In Pasadena, most buyers pay only the county documentary tax, which is a small fraction by comparison. Understanding this jurisdictional difference helps you compare properties on a true apples‑to‑apples basis.
If you are exploring turnkey, design‑forward living in Pasadena with clear, predictable closing costs, connect with Shahe Seuylemezian to discuss available homes and next steps.
FAQs
What is Measure ULA in Los Angeles?
- It is a City of Los Angeles transfer tax that applies above set price thresholds and is charged on the entire sale price to fund housing programs, as outlined on the City’s Measure ULA page.
Does ULA apply to Westlake purchases?
- Yes, Westlake is inside Los Angeles city limits, so qualifying sales there are subject to ULA per the City’s rules and Westlake’s location within Los Angeles.
Does ULA apply to Pasadena property sales?
- No, Pasadena is a separate city, so most sales there pay only the Los Angeles County documentary transfer tax of 0.11 percent unless Pasadena enacts its own tax, per the County’s documentary tax guidance.
Who typically pays ULA and transfer taxes in a deal?
- Payment is negotiated in the purchase contract and collected through escrow, so confirm responsibility with your agent and escrow, and review a written estimate.
How do ULA thresholds work for 2025 closings?
- Thresholds are indexed for inflation and tied to closing date, so check the current figures on the City’s Measure ULA page before you finalize terms.
Do 1031 exchanges avoid ULA in Los Angeles?
- No, ULA has been interpreted to apply to 1031 exchanges and is typically calculated on the gross consideration, according to legal summaries of the ordinance.
What happens if a legal ruling changes ULA after I close?
- The City maintains refund and appeal processes for transfer taxes, so consult the City’s FAQ and your escrow officer if a post‑closing issue arises.
