Measure GS and Santa Monica Apartment Sales

As checked September 17, 2026, the City publishes the following schedule for transfers on or after March 1, 2023. These are Santa Monica city rates, not a countywide tax schedule. [1]

• Below $5 million: $3 per $1,000 of taxable value.
• At least $5 million but below $8 million: $6 per $1,000 of taxable value.
• At least $8 million: $56 per $1,000 of taxable value. [1]

At the third tier, use the full $56 city rate. Do not add the lower city tiers again, and do not apply the rate only to the dollars above the threshold. The code states the rate per $1,000 or fractional part. Escrow should handle that rounding in the actual closing estimate. [1][2]

This is why I would compare expected net proceeds from the offers you receive, especially near the threshold. A higher gross price doesn't automatically leave you with more cash after the change in tax treatment. That is a pricing comparison, not a reason to assume a buyer will pay your tax through a higher offer.

The tax base also deserves a separate check. The code refers to consideration or value conveyed, excluding the value of a lien or encumbrance remaining at the time of sale. A loan paid off through escrow is not the same as a lien remaining on the property. Do not subtract your ordinary mortgage payoff from the sale price and call the balance the transfer-tax base. Have escrow confirm the treatment if debt will remain. [2]

The City lists the Los Angeles County documentary transfer tax at $0.55 per $500 of value, in addition to the applicable Santa Monica city tax. The county normally collects both. Putting the charges on separate lines makes it easier to spot a missing charge or a city tax counted twice. [1]

Have your attorney make sure the purchase agreement states how you and the buyer will allocate the transfer tax, and carry your share into the proceeds estimate. That agreement allocates the cost between you; it doesn't change the total tax owed or the City's collection rights. [2]

Do not assume an apartment sale is exempt because rents are controlled or the buyer plans affordable housing. The City describes specific qualifying affordable-housing transfers and a certification process; approved transfers remain subject to the first-tier city rate and county tax. Get the exemption determination before relying on it in your proceeds estimate. [1]

Use the Measure GS Calculator as an initial estimate, then reconcile its inputs with escrow. Subtract the seller’s taxes, debt payoff, and other charges from the price, then add or subtract net prorations. Leave an unknown amount blank rather than treating it as zero.

• Proposed price: ____; intended closing date: ____; confirmed taxable value: ____.
• Seller’s allocated city transfer tax: ____; seller’s allocated county transfer tax: ____.
• Debt payoff and lender charges: ____; other selling costs and credits: ____.
• Net prorations, added or deducted: ____; estimated cash remaining at closing: ____.
• CPA’s separate income-tax estimate and any withholding already included in escrow: ____.

For a package of properties, partial interests, or related transfers, give counsel and escrow the full proposed transaction. Ask how the taxable transfer and value should be determined rather than assuming each deed gets its own threshold.

Keep the initial proceeds estimate with the valuation and update it when the contract terms change. Recheck the City’s published rules for the intended closing date before accepting an offer that depends on a particular tax result.