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Prop 41: Audits of New Taxes

California ballot, November 3, 2026: what it does, who's paying, and why

Money raised
Yes $58.4M No $31.8M shared with Yes on 40 as of October 27, 20261
Party positions
Democrats NO Republicans YES2,3,4
Cost / income (approx.)
Unknown5
Special interest
Yes side: High · No side: Medium
Worth knowing
Written by Prop 40's opponents to cancel it6
On the November 3 Ballot

Prop 41: Audits of New Taxes

Countermeasure to Prop 40

Who paid to put it on the ballot Building a Better California, a PAC fighting Prop 40, through a petition drive.

History No bill. Written by Prop 40's opponents to counter it.6

A YES vote means
The state auditor would review programs funded by proposed special taxes before they reach the ballot, and keep reviewing them afterward. New state taxes passed since January 1, 2026 that are exempt from the state spending limit would be cancelled.7
A NO vote means
Nothing changes.7
Yes side $58.4M No side $31.8M shared with Yes on 40 Who gains, who pays
Who it helps if it passes
  • Billionaires: Prop 40's revenue is exempt from the spending limit, so this measure could cancel it
  • Voters who want audits of programs paid for by new taxes
Who pays or loses if it passes
  • Programs Prop 40 would fund, if both pass
  • Programs funded by future special taxes, which would face audits and spending limits
What the funders get Nearly all of the money comes from Building a Better California, a PAC whose top donors are billionaires who would pay the Prop 40 tax.1,6

Cost to taxpayers Unknown. It depends on what future taxes voters and the Legislature pass.7

Requires the state auditor to review any proposed special tax before voters decide on it, and counts new voter-approved special taxes toward the state spending limit.7

Counting new taxes toward the spending limit could trigger automatic refunds, reducing money for other state programs. It was put on the ballot by the same group fighting Prop 40.7

YES side special interest: High
  • ✓ One funder dominates: Building a Better California paid over 99% of the YES money1
  • ✓ Funders profit: Its billionaire funders would avoid the Prop 40 tax (our judgment)
  • ✓ Narrow benefit: Mainly protects about 200 billionaires from Prop 40 (our judgment)
  • ✗ Outside money: All top YES donors are in California1
NO side special interest: Medium
  • ✓ One funder dominates: SEIU-United Healthcare Workers West paid 100% of the NO money1
  • ✓ Funders profit: The union's members work in health care, which Prop 40 would fund; defeating 41 protects Prop 40 (our judgment)
  • ✗ Narrow benefit: Health care programs statewide (our judgment)
  • ✗ Outside money: All top NO donors are in California1
Endorsed by
Opposed by
Funding the YES campaign
$58.4M1

Name on its ads: "Yes on 41 - Californians for Transparency and Accountability, a Coalition of Small Businesses, Taxpayers, Good Government Advocates, Accountants and Auditing Experts." Over 99% of this side's money is from Building a Better California.1

Funding the NO campaign
$31.8M shared with Yes on 401

No money has been raised just for this side. The Yes on 40 committee also campaigns against this measure, so the same money is listed for both. The site's grand total counts it once.

Sources for this measure: 1,7,8

Sources

  1. FPPC, Top 10 contributors, November 2026 General Election (data as of Oct 27, 2026)
  2. California Democratic Party, 2026 Proposition Endorsements (PDF)
  3. California Republican Party, 2026 Endorsements
  4. CalMatters, 2026 voter guide (party positions per measure)
  5. Official voter guide (CA Secretary of State), Quick Reference Guide: fiscal impact estimates by the Legislative Analyst
  6. CalMatters, how Props 41 and 42 could cancel Prop 40
  7. Official voter guide (CA Secretary of State), Prop 41 quick reference
  8. CalMatters voter guide