California Ballot Measure Limits Local Real Estate Taxes

California's Secretary of State announced Tuesday that a ballot measure aimed at limiting local transfer taxes on real estate sales has qualified for the November 2026 general election ballot. Sponsored by the Howard Jarvis Taxpayers Association, the initiative, known as the Local Taxpayer Protection Act, would cap such taxes at about 0.05 percent of a property's sale value and require a two-thirds voter majority to approve certain local special taxes, potentially repealing measures like Los Angeles' Measure ULA that passed with simpler majorities.

The announcement came after the campaign collected more than 962,106 valid signatures statewide. If approved by voters, the measure would reduce revenue for cities that depend heavily on transfer taxes, including Berkeley, San Mateo and Alameda, according to an analysis by the nonpartisan Legislative Analyst's Office. The office estimates local governments could lose around $2 billion annually, with equivalent savings for property sellers.

At the center of the debate is Los Angeles' Measure ULA, a voter-approved initiative from 2022 that took effect in 2023. It imposes a 4 percent tax on property sales between $5.3 million and $10.6...