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Proposition 43: Limits Voters’ Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment.

California Statewide • 2026

Upcoming

Official description - California Secretary of State

Limits voters’ ability to pass voter-proposed local special taxes by increasing percentage of votes needed to approve such ballot measures from a majority (over 50%) to two-thirds, beginning January 1, 2027.

Official source: https://voterguide.sos.ca.gov/propositions/43/index.htm

Source captured 2026-10-08.

What your vote means

A YES vote

Certain local government taxes would require two-thirds approval by voters.

A NO vote

Certain local government taxes could continue to be approved by voters with a majority vote.

Official voter guide · source captured 2026-10-08. Read the official overview

Official title and summary
  • Currently, local governments must obtain two-thirds voter approval to impose, extend, or increase special taxes (taxes dedicated to a specific purpose) that they place on the ballot. However, this two-thirds vote requirement does not currently apply to special taxes put on ballot by voter signature gathering.
  • This measure would limit voters’ ability to pass voter-proposed local special taxes by raising the percentage of votes needed to approve such ballot measures from a majority (over 50%) to two-thirds.
  • Applies to voter-proposed ballot measures approved after January 1, 2027.

Prepared by the Attorney General. Read the official title and summary

Official documents

Research

Fiscal impact

Legislative Analyst’s estimate, published in the official voter guide. Read the complete analysis

Background — Legislative Analyst

Local Governments in California. California has many local governments. These include cities, counties, special districts, and school districts.

Vote Thresholds for Local Taxes. The State Constitution allows local governments to increase taxes with local voter approval. Tax increases can be put on a ballot by voters or a local governing board (such as a city council or board of supervisors). Increases in some types of local taxes require a two-thirds vote to approve them, while other types of taxes require a majority (more than half) vote to approve them. Some local tax increases are approved permanently, while others are approved for a limited period of time. Before those taxes expire, voters can be asked whether to extend them.

Figures and full document formatting are available in the official analysis.

Proposal — Legislative Analyst

Requires Certain Local Taxes Receive Two-Thirds Approval by Voters. Under current law, local taxes that are used for a specific purpose require a two-thirds vote to be approved. These are called special taxes. However, recent court decisions have allowed special taxes that are proposed by voters to be approved with a majority vote. Under Proposition 43, beginning on January 1, 2027, any new, increased, or extended local special taxes proposed by voters would require a two-thirds vote.

Figures and full document formatting are available in the official analysis.

Fiscal Effects — Legislative Analyst

Possibility for Lower Local Government Tax Revenues in the Future. Proposition 43 makes it harder for local governments to pass certain taxes. As a result, local governments’ tax revenues could be lower in the future than they otherwise would be. The actual revenue impact is unknown and would depend on future decisions by local governments and voters.

Figures and full document formatting are available in the official analysis.

Arguments in the voter guide

These are the authors’ advocacy statements, not impartial analysis or CalBallot endorsements. Official agencies have not checked these arguments for accuracy.

Argument for

Prop. 43 protects taxpayers by restoring Proposition 13’s two-thirds vote requirement to pass local special taxes, including sales taxes, real estate taxes and utility taxes. Courts have allowed special interests to pass earmarked tax increases with fewer votes. Prop. 43 closes this loophole, protecting taxpayers, homeowners and renters. Vote yes.

Argument against

PROPOSITION 43 LIMITS VOTERS’ ABILITY TO FUND ESSENTIAL LOCAL SERVICES including fire protection, 911 response, schools, roads, hospitals and affordable housing. It doesn’t cut your taxes and lets just 33.4% of voters veto what nearly 67% want. Protect your vote and majority rule. Vote NO on Proposition 43.

Read the full arguments, authors and rebuttals

Supporters and opponents listed in the guide

Supporters

  • California Taxpayers Association
  • Family Business Association of California
  • California Hispanic Chambers of Commerce

Opponents

  • California Professional Firefighters
  • California Federation of Teachers
  • Nurse Alliance of SEIU CA.

These are the submitted lists in the official overview, not exhaustive lists of endorsements. “None submitted” does not mean no opposition exists.

Official voter guide · source captured 2026-10-08. Read the official overview

Campaign finance

2026 reported campaign contributions

SOS-reported contributions to primarily formed committees. These are contributions, not spending. Some committees work on several measures or transfer money to other committees; do not add these figures across measures or treat them as unique donor dollars.

In support

$10,005,010

Reported through 2026-10-06 · 2 committee(s)

In opposition

$7,958,020

Reported through 2026-10-06 · 2 committee(s)

SOS contribution totals and reporting scope · captured 2026-10-08.

Supporting committees (2)
Opposing committees (2)

Top contributors by committee

FPPC list updated 2026-10-06. These lists cover qualifying committees, not every donor or all campaign money. They are not a breakdown of the SOS totals above: the sources have different reporting coverage, and even one FPPC donor amount can exceed a displayed SOS total. An asterisk (*) marks money for a committee involved in multiple measures; it cannot be allocated to this measure alone. Lists below are not added together.

Supporting: Yes on Prop 43 - The Local Taxpayer Protection Act, sponsored by homeowners, businesses, and taxpayers, #1484860
California Business Roundtable Issues PACTop Donors to Contributor: Peter Thiel; Kim DeGeorge CA$9,870,000
Protect Prop. 13, a project of the Howard Jarvis Taxpayers AssociationTop Donors to Contributor: Californians to Restore Local Taxpayers' Right to Vote on Taxes; California Business Roundtable Issues PAC CA$1,038,217.78
Kilroy Realty, LP CA$1,000,000
Moss Management Services, Inc. CA$85,000
The Beverly Hills Estates Inc. CA$50,000
Opposing: No on Prop 43 Stop the Local Taxpayer Deception Act, sponsored by labor organizations, #1492508
SEIU California State Council For Working PeopleTop Donor to Contributor: SEIU California State Council CA$1,500,000
Service Employees International Union Local 1021 Issues PACTop Donor to Contributor: Service Employees International Union Local 1021 CA$500,000
Western States Regional Council of Carpenters Issues CommitteeTop Donor to Contributor: Western States Regional Council of Carpenters CA$500,000
League of California Cities CITIPACTop Donor to Contributor: League of California Cities CA$250,000.01
Opposing: Communities for an Affordable California, Yes on 3, No on 39 and 43 Sponsored by Million Voters Project Action Fund, #1496598
Yes on Prop 3 to Protect Public Education, Health Care and Budget Stability, Sponsored by Education and Labor OrganizationsTop Donors to Contributor: California Teachers Association / Issues PAC; National Education Association (MPO) CA$540,000*
United Domestic Workers of America Issues PACTop Donor to Contributor: United Domestic Workers of America CA$350,000*

Open the FPPC lists and methodology

This is a reporting snapshot. A contribution timeline, donor concentration and sector breakdown have not been calculated for these 2026 records. Earlier elections’ receipt totals use CalBallot’s separate historical finance dataset.

Open in the CalBallot explorer →