““The Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles recently filed suit to invalidate Measure ULA. The plaintiffs argue that because funds raised by Measure ULA are specifically dedicated to housing and homelessness initiatives, the measure qualifies as a ‘special tax…’
…The new lawsuit raises questions regarding whether the City will be able to implement the new transfer taxes by April as planned, or whether the taxes will be upheld at all. But even if the new taxes are upheld, they could be short-lived. A proposed state ballot initiative backed by Kilroy Realty seeks to impose a requirement that any local tax increases proposed by ballot initiative receive the approval of two-thirds of voters rather than a simple majority. The proposed state measure would apply retroactively to taxes imposed between January 2022 and November 2024—and would, therefore, invalidate Measure ULA, which failed to reach the two-thirds threshold.””