Los Angeles Mayor Karen Bass has withdrawn a state bill aimed at significantly revising the city's voter-approved "mansion tax," Measure ULA, just days before a critical vote. The move, which occurred on September 10, 2025, followed intense backlash from housing advocates and original supporters of the measure who accused the Mayor of attempting an "end run around voters." A social media account, "Walk Safe encourages political discourse," highlighted the situation, stating, "> Yet in Los Angeles @MayorOfLA didn’t abide."
Measure ULA, officially known as the "Homelessness and Housing Solutions Tax," was passed by Los Angeles voters in November 2022. It imposes an additional tax on property sales exceeding $5 million, with the revenue specifically earmarked for affordable housing initiatives and homelessness services across the city. Proponents argued the tax was a crucial step to address the city's severe housing and homelessness crises.
Mayor Bass's administration had championed the state bill, contending that modifications were necessary to streamline housing production and address unintended consequences of Measure ULA, which some developers claimed was stifling new construction. The proposed overhaul sought to adjust the tax structure, potentially easing the financial burden on certain real estate transactions. However, this effort was met with strong opposition from groups who believed it would undermine the will of the voters and divert essential funds from their intended purpose.
The withdrawal of the bill marks a significant political setback for Mayor Bass, who has otherwise focused on tackling homelessness and improving city services. Her administration is also navigating a challenging fiscal landscape, having proposed a budget for Fiscal Year 2025-2026 that includes nearly 1,650 city job layoffs to address a projected $1 billion deficit. The ongoing federal lawsuit challenging Los Angeles' sanctuary city policies further adds to the complex issues facing the Mayor.