Proposition
42Bans new state taxes on owning personal property (stocks, accounts, etc.) and certain retroactive taxes
Our readToss-up: a permanent call
Bans state wealth taxes in the Constitution for good. Backed by $128M, mostly from billionaires, plus Newsom and building trades.
Campaign money
$128M yes$22.7M no
Your pick
Key findings
- $128.0M for Yes, one of the biggest Yes campaigns on the ballot (more than Prop 3's $74.8M or Prop 38's $71.3M), through one committee backed by Building a Better California (Brin $102M across its measures). [1][2]
- Its Yes committee is named "Protect Retirement & Life Savings" [1], but Prop 40 already generally excludes pensions and retirement accounts [3]. The people who benefit most from a permanent wealth-tax ban are those whose wealth sits in unrealized gains.
- It's permanent: it would take another statewide vote to ever allow a wealth tax in California. Wealth taxes have mostly disappeared abroad (12 OECD countries in 1990, 4 in 2017, and 3 in 2025 per the Tax Foundation). [4]
- Unlike most billionaire-backed measures, it has backing from Gov. Newsom plus police and fire unions [5] and the State Building Trades [6].
Track record
| Question | Today in California |
|---|---|
| Does the state tax owning stocks or accounts? | No. It taxes only the income from them. [7] |
| Existing personal-property taxes | Vehicle license fee and business-equipment property tax. Not repealed by Prop 42, which applies only to new taxes. [7] |
| Retroactive taxes | Prop 42 limits when they're allowed (LAO's example of a retroactive tax: "a tax on money someone earned two years ago"). [7] |
| Wealth taxes abroad | 12 OECD countries in 1990 → 4 in 2017 → 3 in 2025 (Spain, Norway, Switzerland, per the Tax Foundation), raising 0.6–4.3% of their tax revenue. [4] |
Money and conflicts
- Yes $128.0M. No $22.7M ($21.2M from SEIU-UHW's Prop 40 committee), through Oct 22, 2026. [1]
- Supporters: Building a Better California, Sergey Brin, Reform California, Peace Officers Research Association, California Professional Firefighters, State Building Trades [6], Gov. Newsom [5].
- The public-safety and construction unions are a notable crossover, since their members aren't the ones being taxed. I didn't find a public explanation of their reasons.
Does it solve a lasting problem?
- It settles a policy question permanently in the Constitution instead of leaving it to future voters. Whether that's good depends on whether you want a wealth tax off the table for good. Its near-term purpose is to defeat Prop 40.
If you vote yes: accountability
Bottom line: Prop 42 is a ban, so there's no new money to follow. What to watch is how courts read "personal property" and "retroactive," and whether the ban spills over onto taxes it wasn't aimed at. [7]
Who's accountable
- The courts will define the edges of the ban. Expect lawsuits over any new state tax enacted after Jan 1, 2026. [6]
- The Legislature and the Franchise Tax Board would have to fit future tax laws within it.
What to watch
- Any state tax bill that's challenged or dropped because of Prop 42.
- Lost revenue: the LAO says the effect on future revenue is unclear in size and timing, so watch for budget estimates. [7]
Public records to request (CPRA)
Anyone can file a California Public Records Act request (the state's version of FOIA), with no reason required. Agencies must respond within 10 days, or 24 in unusual cases. [8] The Legislature isn't covered by the Public Records Act. Its records fall under a separate law, the Legislative Open Records Act.
What it does
- Bans new state taxes on simply owning personal property (anything but real estate). [7]
- Limits retroactive taxes. [7]
- Voids conflicting taxes enacted after Jan 1, 2026, which includes Prop 40 if Prop 42 gets more votes. [6]
- Fiscal effect: could reduce future tax revenues; when and by how much is unclear. [7]
Sources 8
3 official2 reporting1 reference2 other
- ^ a b c SoS, contribution totals (through Oct 22, 2026) Secretary of State Official
- ^ Ballotpedia News (Oct 26, 2026) Ballotpedia News Reference
- ^ LAO Prop 40 (retirement exclusion) Legislative Analyst Official
- ^ a b Euronews on wealth taxes (Sept 29, 2025) euronews.com Other
- ^ a b CalMatters, Newsom positions (Oct 9, 2026) CalMatters Reporting
- ^ a b c d e f CalMatters guide CalMatters Reporting
- ^ a b c d e f g h LAO Legislative Analyst Official
- ^ First Amendment Coalition, CPRA deadlines firstamendmentcoalition.org Other