Your guide to Proposition TE: Exempting fire victims from the 'mansion tax'

Oct. 1, 2026 3 AM PT See more from the L.A. Times in Google Search. Set us as preferred Proposition TE would carve out a five-year exemption from L.A.’s “mansion tax” for Pacific Palisades homes damaged or destroyed in the wildfire, sparing sellers six-figure transfer bills on high-end properties.Supporters say fire survivors shouldn’t owe hefty taxes when selling burned-out lots, arguing the break offers basic fairness for families facing insurance shortfalls and steep rebuilding costs.Opponents warn the exemption covers wealthy landlords and investors as well as homeowners, creating a “loophole for the ultrawealthy” and stripping millions annually from Measure ULA’s homeless and affordable housing programs. Many changes were proposed this election cycle to Measure ULA — the so-called ‘mansion tax’ that levies a fee on property sales above $5.4 million to raise money for housing and homeless initiatives — but only one made it to the ballot. Proposition TE seeks to exempt Palisades fire victims from paying the tax if they sell their home within five years of the disaster. What will the measure do? Measure ULA, which took effect in 2023, levies a 4% transfer tax on all L.A. property...