Rayni Williams, Beverly Hills Estates co-founder and CEO, on navigating Measure ULA in LA's real estate market
Measure United, better known as ULA or the mansion tax, has weighed heavily on LA's top agents for over two years, with some calling it the biggest detriment to the market.
Real estate mogul and Beverly Hills Estates co-founder and CEO Rayni Williams recently spoke about the impact of Measure ULA, also known as the mansion tax, on the Los Angeles housing market. Williams' frustration was palpable as she discussed the controversial tax, aimed at raising funds to prevent homelessness and provide more affordable housing, which has been a constant source of concern for those in the real estate industry.
"ULA is the biggest detriment to the market right now. More than interest rates. More than world events. It's really the mansion tax that's causing the most disruption and uncertainty," Williams said, pausing to check her demeanor. "Sorry if I'm shouting," she added sheepishly.
Williams' sentiments are shared by many in the industry, who feel that the tax has done more harm than good since its implementation over two years ago. Critics argue that ULA has created a cloud of uncertainty over real estate deals and has stifled market growth.
The mansion tax, which applies to properties selling for $1 million or more, has resulted in an additional tax of up to 12.5% for the seller. This has caused many high-end homeowners to hold off on listing their properties, leading to a decrease in inventory and a slowdown in sales.
Despite the intended purpose of raising funds for affordable housing, there has been little progress in that regard. In fact, the city has yet to spend any of the $120 million collected through ULA since its inception, leading some to question the effectiveness of the tax.
While some see ULA as