The Sacramento deal did not eliminate Measure ULA — it merely postponed the real estate tax battle to another arena.
Precedent: When the property tax battles erupted before
California is no stranger to property tax confrontations. In 1978, Proposition 13 — co-authored by Howard Jarvis — shook both local finances and state politics for decades to come. This time, the Howard Jarvis Taxpayers Association sought to repeat history, but the outcome turned out quite different: instead of an expensive ballot war, they agreed to withdraw the proposal in exchange for a legislative deal. This signals that lobbying power in Sacramento today is just as formidable as voter mobilization.
According to CalMatters, Jarvis's proposal would cap transfer taxes at no more than 0.055% — that is, 55 cents per 1,000 USD of property value. If approved, 26 California cities, including Los Angeles, would have had to reduce their current tax rates that exceeded this threshold. However, the backroom deal ended this scenario before it reached voters.
Measure ULA and the Vietnamese-American community: Who is directly affected?
What many Vietnamese-American real estate investors in Southern California need to understand is this: Measure ULA — a tax measure approved by Los Angeles voters in 2022 — remains fully intact after this deal. According to The Real Deal, Measure ULA imposes 4% on real estate transactions of 5 million USD and above, and 5.5% on transactions over 10.6 million USD. This is not merely a matter for the wealthy: the tax applies to rental apartments, mixed-use commercial and residential buildings, and industrial projects — the very types of properties that numerous Vietnamese-American entrepreneurs hold or are considering investing in.
Also according to CalMatters, academic analyses have criticized Measure ULA for causing an unusual decline in new apartment construction and reducing property tax revenue for Los Angeles. This is a striking paradox: a tax measure designed to fund affordable housing may actually be hindering the very housing supply it seeks to support.
What the deal actually delivers — and what it doesn't
Many might think this agreement resolves the transfer tax question. But according to CalMatters, the transfer tax issue — including Measure ULA — was not addressed in the deal. The only thing that changes is: instead of voting on Jarvis's proposal (which could have eliminated numerous local tax measures), voters will consider a constitutional amendment raising the threshold for passing taxes from a simple majority to a two-thirds vote — but only applying to tax proposals brought through the signature-gathering process, with no retroactive effect.
In other words: existing tax measures like Measure ULA remain in place. Vietnamese-American investors considering buying and selling high-end property in Los Angeles cannot breathe a sigh of relief yet.
Another notable point: according to The Real Deal, the Los Angeles City Council is considering putting two local measures on the November ballot — one exempting new apartment buildings from taxes for their first 10 years, and one exempting Palisades fire victims when selling their homes. These are specific developments worth monitoring closely.
Broader context: The trend of limiting property taxes extends beyond California
California is not alone in debating property tax limits. In Iowa, according to the Des Moines Register, lawmakers just passed a property tax cut package worth roughly 4 billion USD over six years, with a cap on local revenue growth of 2% annually. In Missouri, state senators passed late at night a proposal to replace income tax with expanded sales tax by just 18 votes — a textbook example of how major tax deals are rushed through in the dead of night when fewest voters are paying attention. In New Hampshire, bipartisan negotiators just reached an agreement on limiting local property taxes, whereby cities will vote on a cap in 2026 and 2028. This trend reflects nationwide political pressure: voters — especially homeowners — are increasingly pushing back against escalating property ownership costs.
What does this mean for the Vietnamese-American community? Vietnamese Americans are among the fastest-growing homeownership groups in Southern California. For those holding commercial property or rental apartments in Los Angeles, every change to voting thresholds or transfer tax rates directly impacts transaction costs and long-term investment plans.
What to watch from now through November 2026
Three points deserve attention in the coming months: First, the exact content of the substitute constitutional amendment — it remains unclear whether the two-thirds threshold will affect future property-related tax proposals. Second, the two Los Angeles City Council local measures — if approved, tax exemptions for new apartment projects will significantly change the investment calculus. Third, whether the real estate industry — which was ready to spend at least 10 million USD to oppose Jarvis's proposal — will continue lobbying for a long-term legislative solution.
Read the original reports at the source links below.