Statewide proposition · November 3, 2026 California General Election

Prop 42: Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes.

Initiative Constitutional Amendment. [1] · Topics: taxes property

Prohibits any new state tax (1) imposed on the ownership of personal property (all things people own other than real estate), or (2) that applies retroactively based on taxpayer’s past activities. Nullifies taxes enacted after January 1, 2026 that conflict with this measure. [2]

What a YES vote means

A YES vote on this measure means: The state could not establish new taxes on the ownership of financial assets or other personal property. [2]

What a NO vote means

A NO vote on this measure means: The state would continue to have the option to establish new taxes on the ownership of financial assets or other personal property. [2]

Official argument in favor

California’s Constitution currently allows the Legislature to tax retirement and savings—even though you already paid taxes on that money when you earned it! Prop. 42 protects Californians from this double taxation, by prohibiting new and retroactive taxes on personal property, including retirement and savings. You earned it. Prop. 42 protects it. [2]

Official argument against

This is just another billionaire-funded trick. Prop. 42 isn’t really about protecting your retirement savings—its only real purpose is to undo the California Billionaire Tax. Billionaires would rather millions of Californians lose healthcare than pay a modest tax on their extreme wealth. Vote NO on 42. [2]

Supporters

CA Professional Firefighters; State Building & Construction Trades Council of CA; AMVETS Department of CA [2]

Opponents

US Senator Bernie Sanders; SEIU United Healthcare Workers West [2]

Both arguments are printed word for word from the official voter guide's summary page, in the same layout. ThinkBallot does not edit or rank them. Read the full arguments and rebuttals.

Fiscal effect

Possibility that tax revenues will not go up as much in the future. [2]

Analysis by the Legislative Analyst (the nonpartisan Legislative Analyst's full explanation)

BACKGROUND Certain Personal Property Is Taxed in California. Both the state and local governments tax the ownership of certain personal property. These taxes are based on the property’s value. Personal property is all the things that people own other than real estate. One example of these kinds of taxes is the vehicle license fee that car and truck owners pay to the Department of Motor Vehicles each year. Another example is the property taxes owners of business equipment pay to the county each year. Ownership of Financial Assets Is Not Taxed. The ownership of many types of personal property is not taxed. One major example is financial assets like stocks and investment accounts. Although the state does tax income people make from their financial assets, there is no tax for simply owning those assets. PROPOSAL Prohibits New Taxes on Financial Assets or Other Personal Property. Under Proposition 42, new taxes on the ownership of financial assets or other personal property would not be allowed. Limits Retroactive Taxes. Proposition 42 limits the situations that a ballot measure or the Legislature can raise any tax retroactively. A retroactive tax is one that applies to things that happened in the past. An example is a tax on money someone earned two years ago. FISCAL EFFECTS Possibility That Tax Revenues Will Be Lower in the Future. Proposition 42 restricts the options the state has to raise taxes in the future. This could make it somewhat harder for the state to raise taxes. This could reduce future tax revenues. When and by how much future revenues would be reduced is unclear.

[3]

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