California Proposition 42 on the Nov. 3 ballot would amend the state constitution to ban new state taxes on owning personal property and financial assets, such as stocks, and to limit taxes that reach back in time.
Why it matters: The measure is written to collide with Prop 40, the proposed billionaire wealth tax. The Legislative Analyst's Office says Prop 42 would cancel conflicting taxes enacted after Jan. 1, 2026, which could block Prop 40 if Prop 42 gets more yes votes.
What a vote means
- Yes: The state could not adopt new taxes on owning personal property or financial assets, and new retroactive taxes would be limited.
- No: The state keeps its current power to propose such taxes, subject to voter or legislative approval.
- Fiscal effect: The LAO says it could mean lower state revenue in the future than would otherwise be possible, depending on what taxes the state might have adopted.
Who is for and against
Supporters include the California Professional Firefighters, the State Building and Construction Trades Council and AMVETS, KQED reports. Opponents include Sen. Bernie Sanders and SEIU-UHW, the health care workers union behind Prop 40. The committee Building a Better California has given $18 million to the yes side, per KQED.
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