City of LA Measure TE to suspend ‘mansion tax’ for five years for fire victims

The City of L.A.'s Measure TE would provide owners of properties damaged by the Palisades fire with an exemption from the 4% transfer tax on properties valued at more than $5.3 million, if they sell their properties within five years of the fire.

Supporters say the measure could expedite the financial recovery of the Pacific Palisades community of 83,000 residents after the devastating 2025 fire. More than 6,800 structures were damaged in the fire, according to the The California Department of Forestry and Fire Protection.

“1 would give them money to build back up again in their properties, or at least give them taxes to help them hold on to their properties for a certain amount of time, maybe a decade so they can build again without feeling pressure to sell,” said Gustave Trejo. “Most of the people that lived there, that was their only… asset.”

Others said the fire wasn’t the residents’ fault so they shouldn’t suffer more than they have already.

“I think the city should give a tax exemption to people affected by the fire…They already lost their homes or property, so I think they deserve support,” said Go Hasegawa. “They can save money by not paying the tax and use that money to rebuild their lives. I also think people should help each other when something like this happens.”

Councilmember Traci Park proposed the measure.

"Further taxing people who have already lost everything is unreasonably cruel,” Park said.

Opponents say the city can’t afford to lose that revenue, which was $1.2 billion from April 2023 to April 2026.

“I feel this is not the best way to solve this situation. Maybe I would propose any other program that does not include [the loss of revenue]” since the city sorely needs the taxes, said Diego Gomez, a student. “I’m human and I feel for those [people]...I don’t think it’s a bad idea. I just feel there are more ways to solve it.”

Councilmember Eunisses Hernandez opposed it, arguing there will be less money for affordable housing.

“I do not support creating another loophole for the ultra-wealthy while reducing funding for affordable housing,” she said, according to NBC Los Angeles.

The measure would not create any extra cost to taxpayers.

This story was produced by Cal State LA's UT Community News.