Propositions 40, 41 and 42: three tax measures could affect one another — what will voters see on the ballot?

Three proposals on the same ballot

In the November 3, 2026, General Election, California voters will see Propositions 40, 41 and 42. All three concern state taxes or how tax revenue is handled, but each asks a different question.

Proposition 40 would impose a one-time 5% tax on certain taxpayers with assets over $1 billion. The California Secretary of State says the revenue would go primarily to health care.

The state guide says Proposition 40 revenue would be exempt from certain constitutional requirements for school funding and the state spending limit.

Proposition 41 would require audits before an election and recurring audits of programs funded by certain new special taxes. It also could nullify some state taxes enacted after January 1, 2026. That would apply if their revenue were exempt from the voter-approved state spending limit.

Proposition 42 would prohibit any new state tax on the ownership of personal property. It also would prohibit certain taxes applied retroactively based on a taxpayer’s past activity. The measure defines personal property as things people own other than real estate.

How the measures connect

The reason to read the three proposals together is that Propositions 41 and 42 could conflict with Proposition 40. CalMatters explains that if either Proposition 41 or Proposition 42 receives more votes than Proposition 40, Proposition 40 would be nullified even if it also passes.

That interaction does not turn the three ballot questions into one choice. The official guide presents each measure separately, with its own YES/NO explanation and fiscal impact.

What the two sides say in the official guide

For Proposition 40, the guide lists U.S. Senator Bernie Sanders and SEIU United Healthcare Workers West among its supporters. It lists the California Primary Care Association, California School Boards Association and California Taxpayers Association among its opponents.

For Proposition 41, the listed supporters include the California Society of Certified Public Accountants, CalAsian Chamber of Commerce and California Taxpayers Association. Sanders and SEIU United Healthcare Workers West are listed among the opponents.

For Proposition 42, the guide lists California Professional Firefighters, the State Building and Construction Trades Council of California and AMVETS Department of California among the supporters. Sanders and SEIU United Healthcare Workers West are listed among the opponents.

These organizations have positions on the measures; the lists are not independent confirmation of their arguments. The state guide summarizes those arguments. Proposition 40 supporters describe it as a health care revenue source funded by very wealthy taxpayers; opponents raise concerns about economic and budget effects.

Supporters of Proposition 41 emphasize public audits, while opponents say it could affect Proposition 40. Proposition 42 supporters say it protects property and savings; opponents say it could block the proposed tax in Proposition 40.

Fiscal estimates are not guaranteed revenue

The state guide estimates that Proposition 40 could generate temporary revenue in the tens of billions of dollars over several years. It also says income-tax revenue from very wealthy taxpayers could decrease by less than $1 billion per year over time.

For Proposition 41, the net budget effect is unknown. It depends on future decisions by voters, lawmakers and other policymakers. For Proposition 42, the guide notes the possibility that tax revenue may not grow as much in the future.

These are estimates in the state guide, not outcomes that have already occurred. Voters can compare the “Fiscal Impact” and “What Your Vote Means” sections for each measure in the official voter guide.

Voters will decide each proposal on November 3, 2026. After the election, the certified results will determine how the measures interact.

Until then, state records and reporting help explain what each proposal would do and what the two sides argue.

Bolsa Bridge does not endorse candidates or take positions on ballot measures. This article summarizes public records so you can decide for yourself.