Los Angeles Mansion Tax Critics Ask Federal Court to Revive Case

The Ninth Circuit should revive a federal court challenge to a Los Angeles fee on real estate sales and transfers worth more than $5 million, property owners told the appeals court Tuesday.

The owners, led by Newcastle Courtyards LLC, want the US Court of Appeals for the Ninth Circuit to reverse a trial court ruling that their suit falls under the Tax Injunction Act’s limits on when federal courts can weigh in on state tax matters.

Measure ULA, which imposed the levy, isn’t a tax covered by the act because it was enacted by local voter initiative rather than the ...