Understanding the New ULA Real Estate Tax Law in California

If you own a property with a value of $5 million or more in California, you may be subject to the new ULA real estate tax law, also known as the mansion tax. This new law affects high-value properties and has been implemented to fund programs aimed at providing affordable housing and reducing homelessness in California.

The mansion tax is a new tax rate that is based on the value of your property. The chart below shows the new tax rates under this law:

This means that if your property is valued at $5 million or more, you will be subject to the 0.25% tax rate, and if your property is valued at $100 million or more, you will be subject to the maximum tax rate of 0.50%.

The revenue generated from this tax will be used to fund programs that aim to provide affordable housing and reduce homelessness in California. These programs will help make it easier for people to find a place to live and make the state a more equitable place to live.

If you own a property valued at $5 million or more, it is important to speak with a real estate agent or tax professional to understand how this new law may affect you. They can provide guidance on how to best manage this new tax and any potential implications it may have on your financial situation.

Here are a few tips for homeowners with homes valued above $5 million:

Review your property value: Make sure your property has been properly valued by an expert to ensure you are not paying more tax than necessary.

Consult a tax professional: Speak with a tax professional to determine if there are any strategies you can use to minimize your tax burden.

Consider your options: If you are considering selling your property, it may be beneficial to do so before the new tax law goes into effect.

Stay informed: Stay up-to-date on any changes or updates to the new tax law and how it may affect you and your property.

The new ULA real estate tax law, also known as the mansion tax, is a measure aimed at providing affordable housing and reducing homelessness in California.

If you are a homeowner with a high-value property, it is important to understand how this new law may affect you and seek guidance from a professional.