Howard Jarvis Pulls Repeal Drive, Shifts L.A. ‘Mansion Tax’ Fight to Sacramento and the Ballot

Overview

• The Howard Jarvis Taxpayers Association withdrew its statewide initiative to overturn Los Angeles Measure ULA on Friday, June 26, after state lawmakers quickly advanced language for a constitutional amendment called ACA 22.
• ACA 22 would restore a two-thirds approval threshold for certain local special taxes that recent court rulings had allowed to pass with a simple majority, but the amendment itself must win voter approval to take effect.
• Assembly Bill 736, unveiled earlier this week and designed to keep high rates on very expensive single-family sales while capping rates at 1.5% for non-mansion deals, now faces an uncertain future after the Howard Jarvis pullback.
• Measure ULA remains in place and has raised about $1.2 billion since April 2023, yet much of that money is partially unspent because of administrative hold-ups, including the outgoing city attorney withholding long-term contract approvals for eviction defense funding.
• Local politics will continue to matter: the Los Angeles City Council is weighing separate November ballot options such as a 10-year exemption for new apartment buildings and an exemption for Palisades fire victims, while developers and housing advocates prepare for a voter fight over future local tax rules.