Los Angeles Voters Will Decide Proposition TE in November

The ballot measure offers a mansion tax exemption for homeowners affected by the 2025 Palisades Fire.

Updated on Oct. 8, 2026 in Taxes

Isometric editorial illustration featuring a stylized residential roofline and a single structural beam, representing local property tax policy. — Los Angeles voters will decide in November 2026 whether to grant a mansion tax exemption to homeowners affected by the 2025 Palisades Fire. AI Illustration. Upload story photo >

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Should homeowners affected by a fire disaster be exempt from paying local housing-related mansion taxes?

In November 2026, Los Angeles voters will decide the fate of Proposition TE, which proposes a specific exemption from the city's Measure ULA transfer tax. The measure aims to assist survivors of the January 2025 Palisades Fire by allowing property owners to bypass the tax when selling their homes.

Why it matters

Proponents argue that the current tax structure unfairly burdens disaster survivors who may be forced to sell after losing their homes. Opponents, meanwhile, have expressed concern that the proposal lacks sufficient guardrails to prevent property investors or limited liability companies from taking advantage of the tax relief.

Measure ULA currently taxes real estate sales exceeding $5.4 million at 4% and those above $10.9 million at 5.5%. Proposition TE is projected to reduce total program revenues by $35 million to $66 million over the designated eligibility period.

The players

Los Angeles City Council

The legislative body for the city of Los Angeles that voted in July 2025 to advance the measure to the ballot.

Los Angeles City Clerk

The official municipal office responsible for managing election filings and verifying that no official arguments were submitted against the proposition.

The details

The proposed exemption would apply to residential properties owned as of January 7, 2025, and remain available for qualifying sales until January 6, 2030. The measure moved to the November ballot following a vote by the Los Angeles City Council in July 2025.

January 7, 2025: The Palisades Fire began and established property ownership eligibility dates.
July 2025: The Los Angeles City Council voted to advance the proposition to the ballot.
November 2026: Voters will decide on Proposition TE during the election.
January 6, 2030: The eligibility period for the proposed tax exemption expires.

Market Dynamics

Proposition TE represents a targeted modification to Measure ULA, the citywide transfer tax passed in 2022. It tests whether the original legislative intent of the tax can be reconciled with relief measures for specific disaster-impacted property owners.

Homeowners who owned residential property in the affected area on January 7, 2025, may be eligible for a one-time refund or exemption if they sell their property before January 2030. Conversely, if the measure fails, these owners will remain subject to the standard 4% or 5.5% tax rates.

The takeaway

Voters are being asked to balance tax relief for disaster victims against the potential for significant budget impacts for city programs. Residents should review their property ownership status relative to the January 2025 cutoff date to determine if they would qualify under the new rules.