CALIFORNIA INITIATIVE REVIEW
Initiatives at a Glance 2026 EDITION
University of the Pacific McGeorge School of Law | 3200 5th Avenue, Sacramento, CA 95817 | law.pacific.edu
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION 41: PROHIBITS EXCLUDING NEW STATE TAXES FROM SPENDING LIMIT AND REQUIRE SPECIAL TAX AUDITS INITIATIVE Current Law • No audit currently exists on propositions prior to their passage. • The State Auditor conducts audits on how well the state and local governments in California use their money, run their programs, and includes recommendations to improve efficiency. • Annual appropriation limits on state and local governments are based on appropriations from the prior fiscal year; this revenue limit is called the Gann Limit. • Revenues in excess of the appropriation limit are returned to taxpayers via revision of tax rates within two fiscal years. Proposed Law • Would require a one-timed audit of all proposed special tax propositions once they receive 25% of the required number of signatures to qualify for the ballot. • Would require audits every four years of all programs (whether old or new) getting money from special taxes. • The state auditor would be required to include ways to reduce the program's annual costs by 10%. • The audit would be funded by the money collected from the special tax if the proposition passes. If it does not, the audit would be funded from the General Fund • Would prohibit new state taxes enacted after January 1, 2026, from being excluded from the existing voter approved state spending limit, i.e. the Gann Limit. Policy Considerations YES on Proposition 41
NO on Proposition 41
• Initial audit will be in the voter guide
• Prop 41 is a billionaire funded scheme
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and will allow voters to make a more informed decision when voting. Tax rebates for Californians will be more likely with special taxes counting towards the spending limit. Would require the State Auditor to assess if special tax revenues are being used effectively. Many special taxes are directed to programs such as addressing homelessness with little to show.
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designed to undo the billionaire tax (Proposition 40). Will deplete the General Fund when audited initiatives do not pass. Creates extra cost to the California people in the form of useless audits for measures that do not pass. If Prop 41 gets more yes votes than Prop 40, then Prop 40 is null and void regardless of if the majority of the voters approve it.
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION 42: PROHIBITS NEW TAXES ON RETIREMENT HOLDINGS, PERSONAL ASSETS, AND SAVINGS AND LIMIT RETROACTIVE TAXES INITIATIVE Current Law • California taxes certain categories of personal property based on value. This includes the Vehicle License Fee, which is assessed on vehicle value, and business personal property taxes, which counties assess on business equipment. • The state does not tax ownership of financial assets such as stocks, bonds, and investment accounts. California's income tax only applies to what they generate, not to the assets themselves. Proposed Law • Proposition 42 would amend the California Constitution to prohibit California from enacting new taxes on the ownership or control of personal property (retirement holdings, individually owned assets, and other personal savings). • Proposition 42 would also prohibit the retroactive application of taxes (personal property or otherwise). • If passed, the ballot measure would nullify any tax enacted after January 1, 2026, that conflicts with it. If Proposition 42 receives more affirmative votes than Proposition 40, the California Billionaires' Tax Act, Proposition 42 would nullify it in its entirety. Policy Considerations NO on Proposition 42
YES on Proposition 42
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Proposition 42 would protect the security of retirement holdings, individually owned assets and personal savings. Prohibiting the enactment of new taxes on the ownership or control of personal property would prevent California from taxing people for owning or controlling assets through their retirement, portfolios, and personal property. The measure would prevent California from taxing income or realized capital gains and will draw a line between taxing the gains on assets and the ownership of assets.
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Proposition 42 counters Proposition 40, the California Billionaire Tax Act (CBTA), and would invalidate the CBTA if it receives more yes votes, allowing California billionaires to avoid a one-time tax whose revenue would fund healthcare and education that have lost funding because of the "One Big Beautiful Bill." Vague language in Proposition 42 could let the measure affect more than retirement and personal savings; it could also reach current taxes like the Vehicle License Fee, which local governments rely heavily on.
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
PROPOSITION/MEASURE: I PLAN TO VOTE:
YES NO
2026 California Initiative Review | McGeorge School of Law
University of the Pacific McGeorge School of Law | 3200 5th Avenue, Sacramento, CA 95817 | law.pacific.edu