Special interest groups are pushing cities across California to impose new real estate transfer taxes – in other words, a sales tax on the price of a home or other property – to bolster municipal budgets. Excessive transfer taxes are damaging real estate markets. Some of the worst examples include San Francisco (6.0%), Los Angeles (5.5%), Santa Monica (5.6%), and Culver City (4.0%).
Recent work by researchers at UCLA, USC, UC Irvine, and Harvard shows that transfer taxes like ULA chill real estate transactions and, critically, slow the growth of the property-tax base that funds schools, police, and fire protection. In California, property-tax revenues only keep pace with inflation when properties turn over or when new development comes online. The data are clear: ULA has reduced L.A. transactions over $5 million by 30–50% and has materially slowed permitting for new development. The result is not only a worsening housing shortage but a structural drag on the revenue growth public services rely on for stable funding.
The UCI/Harvard analysis shows how transfer taxes like ULA “rob Peter to pay Paul.” Their model demonstrates that, at the extreme, each dollar raised by Measure ULA can suppress more than a dollar in future property-tax revenue by reducing the turnover and reinvestment needed to refresh assessed value. Schools and first-responder agencies--whose budgets depend on a steadily growing tax base--bear those losses over time.
The attached LTPA email petition packet contains a blank petition form, detailed instructions on how to complete and return the petition, and a campaign remittance form. Please click on the following link for a video with instructions on how to fill out the petition: https://www.localtaxpayerprotection.com/petition.
You can download petitions online as well.
