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Tax

Oct. 26, 2023

Challenge to LA ‘mansion tax’ is dismissed, but appeals are ready

The plaintiffs, including the organization that promoted Proposition 13, say they will appeal. One attorney said the proposition, now Article 13 of the state Constitution, prohibits special property taxes and no other city has done it.

A Los Angeles Judge dismissed all challenges to the city’s so-called “mansion tax,” finding that Proposition 13’s supermajority requirement to increase taxes does not apply to citizens’ initiative power to raise special taxes by a simple majority vote.

Judge Barbara M. Scheper’s ruling adds some perhaps temporary certainty around Measure ULA, an ordinance approved by 57% of Los Angeles voters last November. It imposed a 4% tax on properti...

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