Sellers in Bel Air, Holmby Hills and Beverly Glen have paid $98 million under Los Angeles' Measure ULA transfer tax since it took effect in 2023, making ZIP code 90077 the second-highest revenue source for the so-called mansion tax in the entire city.

That figure, drawn from city data through June and published Aug. 9 by The Real Deal, came days after the Los Angeles City Council voted 13-1 on Aug. 5 to place a Measure ULA exemption for Pacific Palisades fire victims on the November ballot. Beverly Hills residents are not subject to the tax because the city sits outside Los Angeles' jurisdiction. But their neighbors in Bel Air and Holmby Hills pay it on every qualifying sale.

The 108 transactions that generated the $98 million trail only Brentwood's ZIP code 90049, which has produced $125.5 million across 240 transactions. Pacific Palisades itself ranks third at $68.2 million from 147 sales.

What the ballot measure does

Authored by District 11 Councilmember Traci Park, whose district includes Pacific Palisades, the measure would grant fire victims a one-time, five-year exemption from Measure ULA's transfer tax on homes damaged or destroyed by the January 2025 Palisades Fire. It applies only to original owners and first transactions for residential properties, with the five-year window expiring in January 2030.

Measure ULA imposes a 4% tax on real estate sales between $5.4 million and $10.9 million in the city of Los Angeles, and 5.5% on sales above $10.9 million. The thresholds are adjusted annually. Since taking effect in April 2023, the tax has raised nearly $1.3 billion from more than 1,700 transactions, funding affordable housing construction, rental assistance, eviction defense and homelessness prevention programs.

Burned lots in the Palisades have already been selling well above the threshold. A lot at 14948 Camarosa Drive sold in March for over $7 million; one at 906 Glenhaven Drive sold in February for $6.6 million; and a lot at 15300 Antioch Street sold in July for $5.9 million. L.A. County's fire damage database confirmed all three homes were completely destroyed.

The vote and the dissent

The council approved the measure without discussion on Aug. 5. Councilmember Curren Price was absent.

The sole "no" came from Councilmember Eunisses Hernandez, who represents District 1. At the July 1 council meeting where the ballot language was finalized, Hernandez argued the exemption could benefit LLCs and investors rather than homeowners who lost primary residences.

"Any exemption should only be for homeowners whose primary residence was destroyed, and people who genuinely need help rebuilding, not LLCs, investors or people with a portfolio of properties," Hernandez said at that July 1 meeting, according to LAist.

Park, speaking the same day, framed the tax as an obstacle to recovery, saying fire victims face "the regulatory hell that so many are still trapped in" and have no choice but to sell.

Revenue impact and what's next

A May 2026 report from the L.A. Housing Department estimated the Palisades exemption could reduce Measure ULA's annual revenue by up to 6%, or roughly $32 million per year. The measure needs a simple majority of voter support in the November general election to pass.

Mayor Karen Bass first proposed a Palisades exemption in an October 2025 memo, though she originally sought a three-year window rather than five. As we reported July 26, Measure ULA has reshaped the luxury market across Los Angeles, with remodel permits for high-priced homes jumping 46% since implementation.

A separate proposed exemption for newly constructed apartment buildings in their first 10 years has not yet passed the council.