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The U.S. Court of Appeals for the Ninth Circuit has agreed to hear a challenge to Measure ULA, a November 2022 referendum in Los Angeles to tax high-end property sales to fund affordable housing that has fallen short of its goals.in early 2023, Measure ULA, requires the city “to collect a 4% tax on sales over $5 million, and a 5.5% tax on sales of property worth $10 million or more.” It was supposed to bring in $900 million annually.
The federal civil rights case, filed by Newcastle Courtyards, was dismissed by a district court for lack of jurisdiction over state taxes. Newcastle argues that proponents of Measure ULA misrepresented it as a tax on millionaires and billionaires, disregarding the fact that those selling their high-end properties might actually be in dire financial circumstances.
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