SEC. 21.9.2. TAX IMPOSED.

   (Amended by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)

   (a)   There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person’s or persons’ direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds $100.00, a tax at the rate of $2.25 for each $500.00 or fractional part thereof.

   (b)   In addition to and separate from any tax imposed under Subsection (a) of this section, starting on April 1, 2023, there is hereby imposed a tax known as the “Homelessness and Housing Solutions Tax” on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person or their direction, when the consideration or value of the interest or property conveyed (including the value of any lien or encumbrance remaining thereon at the time of sale) exceeds:

   (1)   $5,000,000 but is less than $10,000,000, a tax at the rate of 4% of the consideration or value; or

   (2)   $10,000,000 or greater, a tax at the rate of 5.5% of the consideration or value.

   (c)   The Director of Finance for the City of Los Angeles shall adjust the consideration or value thresholds set forth in Subsection (b) of this section adjusted annually based on the Bureau of Labor Statistics Chained Consumer Price Index (C-CPI-U), pursuant to guidelines and procedures the Director of Finance establishes pursuant to Subsection (c) of Section 21.9.11 of this Code.

SEC. 21.9.3. PERSONS LIABLE.

   Any tax imposed pursuant to Sec. 21.9.2 hereof shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

SEC. 21.9.4. EXEMPTION – DEBT SECURITY.

   Any tax imposed pursuant to this article shall not apply to any instrument in writing given to secure a debt.