Los Angeles and Pasadena Place Fire-Related Tax Measures on Ballot

The Los Angeles City Council voted 13-1 on Tuesday to place a measure on the November ballot that would exempt homeowners affected by the January 2025 Palisades Fire from the city's 'mansion tax,' known as Measure ULA. The proposed one-time exemption would apply to original owners and first transactions of residential properties damaged or destroyed by the fire for five years. Councilwoman Traci Park sponsored the measure to assist survivors struggling with insurance and bureaucracy. However, Councilwoman Eunisses Hernandez cast the sole opposing vote, arguing the move could create a loophole for wealthy investors and LLCs, potentially reducing annual tax revenue by up to $32 million, according to a report from the L.A. Housing Department.

Separately, the Pasadena City Council voted 7-0 on August 3 to place a parcel tax measure on the November ballot to fund a 10-year fire department improvement plan. Proposed by Fire Chief Chad Augustin, the tax would levy 19 cents per square foot annually on improved property, generating an estimated $22.1 million per year. The funds would modernize fire stations, upgrade 911 systems, and expand staffing. The measure excludes senior citizens, disabled individuals, and very low-income owners, and requires a two-thirds majority for approval. While Mayor Victor Gordo framed the measure as an opportunity for voters to review the city's service record, developers and realtors argued the tax unfairly burdens property owners.