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Prop 42: Ban on Personal Property Taxes

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

Money raised
Yes $146.0M No $31.8M shared with Yes on 40 as of October 27, 20261
Party positions
Democrats NO Republicans YES2,3,4
Cost / income (approx.)
Less income later5
Special interest
Yes side: High · No side: Medium
Worth knowing
If it gets more votes than Prop 40, Prop 40 is cancelled6
On the November 3 Ballot

Prop 42: Ban on Personal Property 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 could not create new taxes on owning financial assets or other personal property, or taxes based on people's past activities. Conflicting taxes passed since January 1, 2026 would be cancelled.7
A NO vote means
The state could still create such taxes in the future.7
Yes side $146.0M No side $31.8M shared with Yes on 40 Who gains, who pays
Who it helps if it passes
  • Billionaires: if Prop 42 gets more votes than Prop 40, it cancels Prop 40
  • People worried about future state taxes on savings or investments
Who pays or loses if it passes
  • Programs Prop 40 would fund, if Prop 42 gets more votes
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 State tax revenue may not grow as much in the future.7

Bans new state taxes on owning personal property, such as investment accounts and business stakes, and bans retroactive taxes passed after January 1, 2026.7

If Prop 42 gets more yes votes than Prop 40, it cancels Prop 40 even if both pass. This is a constitutional amendment.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 42 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
$146.0M1

Name on its ads: "Yes on 42 - Protect Retirement & Life Savings, a Coalition of Retirees, Blue-Collar Workers, Seniors, Veterans, Small Businesses & Taxpayers." 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 42 quick reference
  8. CalMatters voter guide