Coalition Led by Miguel Santana Recommends Mansion Tax Tune-up

If Los Angeles heavyweight Miguel Santana has his way, he’d rob support for a statewide initiative to scuttle the city’s so-called mansion tax by drawing backers for a superior fix.

The CEO of L.A.-based California Community Foundation now leads a group that aims to tune up and thus win support for the transfer tax known as Measure ULA, while flattening the tires of the statewide tax-limiting initiative that would drive it into a ditch, Politico reported.

ULA adds a 4 percent property transfer tax on all real estate that sells for more than $5.3 million and a 5.5 percent tax on sales over $10.6 million.

The new coalition led by Santana, dubbed Affordable LA: Mend It Don’t End It, is made up of nonprofits, business groups and the union representing carpenters. It wants to tweak Measure ULA which was approved by voters in 2022 to levy a tax on the sales of high-dollar real estate deals. Critics say the tax has put the kibosh on high-value commercial and multifamily sales while slowing housing production.

His group’s fix for the mansion tax would double down on many proposals introduced by Los Angeles Council Member Nithya Raman in January, but tossed out by her colleagues and angering her left-leaning allies.

They include exempting new multifamily and commercial development from the Measure ULA tax for 15 years; giving city officials more flexibility to change how the transfer tax money is spent without having to return to the ballot; and providing relief for property owners affected by natural disasters such as last year’s Palisades fire.

Santana believes the proposed changes would take the wind out of an initiative from the Howard Jarvis Taxpayers Association that would make significant cuts to Measure ULA and other transfer taxes across the state, according to Politico. HJTA has filed signatures for its initiative to appear on the November statewide ballot.

“We’re trying to give folks an alternative,” Santana told Politico. “Those who are based in Los Angeles or those who invest in Los Angeles may decide, ‘Look, if L.A. moves forward, then maybe we won’t fund the other ballot measure.’”

Santana, who once served as the city administrative officer, now heads the foundation that manages more than $2.5 billion in assets and awards more than $300 million a year in community grants across Los Angeles County, according to his LinkedIn page.

Three years ago, the California Community Foundation had put its weight behind the ballot initiative.

“Because of that,” Santana told Politico, “I have a greater sense of responsibility to be honest about the unintended consequences and to use our ability to advocate for changes.”

This month, he appeared alongside Mayor Karen Bass and supporters, where the mayor trumpeted $300 million in affordable housing funding from Measure ULA.

He said lawmakers in Sacramento are getting antsy because the Jarvis initiative would impact local taxes across the state. A Los Angeles City Council committee was formed to recommend unspecified changes for the local ballot in November, with a new deadline of June 1.

“Legislators I’ve spoken to, they all said, ‘In a perfect world, Los Angeles takes care of Los Angeles,’” he added. “Even now, they’re waiting to see if the city is going to take action. But they’re also prepared to do something if Los Angeles doesn’t.”

– Dana Bartholomew