AlignAlgo Vote · Explainers · Prop 42
California · November 3, 2026 · Initiative Constitutional Amendment
Proposition 42: Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes.
Prohibits new state taxes on the ownership of personal property (everything people own other than real estate) and prohibits taxes that apply retroactively based on a taxpayer's past activities.
The official ballot language
PROHIBITS NEW STATE PERSONAL PROPERTY TAXES AND CERTAIN RETROACTIVE STATE TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Prohibits any new state tax (1) imposed on the ownership of personal property (all things people own other than real estate), or (2) that applies retroactively based on taxpayer's past activities. Nullifies taxes enacted after January 1, 2026 that conflict with this measure. Fiscal Impact: Possibility that tax revenues will not go up as much in the future. Supporters: CA Professional Firefighters; State Building & Construction Trades Council of CA; AMVETS Department of CA Opponents: US Senator Bernie Sanders; SEIU United Healthcare Workers West
PROHIBITS NEW STATE PERSONAL PROPERTY TAXES AND CERTAIN RETROACTIVE STATE TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. • Prohibits new state taxes on personal property, including business interests, intellectual property, and financial assets (including assets in retirement and investment accounts). • Prohibits new state taxes that apply retroactively based on the taxpayer's conduct, activities, or a status that occurred before the new tax's effective date. • Applies to new taxes that are enacted or take effect on or after January 1, 2026. • States that other voter-approved measures appearing on the same ballot are void if they conflict with this measure and this measure receives more affirmative votes. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: • Possibility that tax revenues will not go up as much in the future.
Source: California Secretary of State
What your vote does
Supports amending the California Constitution to prohibit, on or after January 1, 2026: (1) new state taxes on the ownership or control of retirement holdings, individually-owned assets, and other personal savings (pensions, 401(k)s/IRAs, mutual funds, financial assets, business interests, digital assets, intellectual property, personal belongings); and (2) retroactive taxes based on conduct, activities, or status predating the tax's effective date, with limited emergency exceptions.
Opposes the prohibitions; the state would continue to have the option to enact new taxes on ownership of financial assets or other personal property, including retroactively.
Source: Ballotpedia
What's actually in it — provision by provision
Propositions bundle things together. Here is every operative provision, separately:
Prohibits new state taxes on the ownership of personal property, including retirement holdings, business interests, and financial assets.
Basis: Ballotpedia: prohibits new state taxes on the ownership or control of retirement holdings, individually-owned assets, and other personal savings.
Prohibits new state taxes that apply retroactively based on a taxpayer's past conduct, activities, or status.
Basis: Ballotpedia: prohibits new state taxes imposing liability based on conduct or status that occurred before the tax's effective date.
Competing-measure rule: conflicting same-ballot taxes are void if this measure receives more votes.
Basis: Ballotpedia: conflicting same-ballot taxes are void if this measure gets more affirmative votes (directly targets Prop 40's retroactive wealth tax).
Arguments, both sides
“Many Californians struggle for decades to build a nest egg for retirement and their families' futures. … Public resources should be managed responsibly, without imposing new taxes on our retirement savings.”
— Yes on 42 campaign (Yes on 42 – Protect Retirement & Life Savings) [source]
“Prop. 42 protects Californians from this double taxation, by prohibiting new and retroactive taxes on personal property, including retirement and savings.”
— Official voter guide PRO argument [source]
“Props. 41 and 42 were put on the ballot to trick voters into making a billionaire tax impossible to enforce.”
— Erica Olivo Reynoso, licensed vocational nurse, SEIU-United Healthcare Workers West [source]
“Prop. 42 isn't really about protecting your retirement savings—its only real purpose is to undo the California Billionaire Tax.”
— Official voter guide CON argument [source]
Who's funding each side
Support: $94.8M · Oppose: $340K
As of Reports processed through September 19, 2026; next report deadline October 22, 2026.
Top supporters: Sergey Brin ($102,000,000.00); L. John Doerr, III ($30,000,000.00); Patrick Collison ($22,000,000.00); Eric Schmidt ($15,141,313.01); Vinod Khosla ($12,561,504.00)
Top opponents: Alan Davis ($250,000.00)
Source: Ballotpedia campaign finance
Endorsements
- California Professional Firefighters
- State Building and Construction Trades Council of California
- AMVETS Department of CA
- California Black Chamber of Commerce
- California Chamber of Commerce
- California Enlisted Association of the National Guard of the United States
- California Multicultural Business Alliance
- California Senior Alliance
- California Small Business Association
- California Taxpayers Association
- Contra Costa Taxpayers Association
- Disabled American Veterans Department of California
- Howard Jarvis Taxpayers Association
- Placer County Taxpayers Association
- Reform California
- Ventura County Taxpayers Association
- Sergey Brin, Google co-founder
- Patrick Collison, CEO of Stripe
- John Doerr, chairman of Kleiner Perkins
- Max Levchin, CEO of Affirm
- Stewart Resnick, president/chairman of The Wonderful Company
- Eric Schmidt, former CEO of Google
- Tony Xu, CEO of DoorDash
- US Senator Bernie Sanders
- SEIU United Healthcare Workers West
- Democratic Party of California
- California Democratic Socialists of America (DSA)
- California State PTA
- Indivisible SF
- League of Women Voters of California
Source: Ballotpedia
Polling
Public Policy Institute of California · Sept. 4, 2026 – Sept. 10, 2026
Yes 54% · No 43% · Undecided 4%
1103 likely voters (±3.80%)
UC Berkeley Institute of Governmental Studies · Aug. 3, 2026 – Aug. 9, 2026
Yes 40% · No 37% · Undecided 23%
2310 likely voters (±2.50%); sponsor: Los Angeles Times
Fiscal impact
Possibility that tax revenues will not go up as much in the future. (Per the Secretary of State's official summary.)
How does Proposition 42 line up with your values?
Take the 13-question AlignAlgo Vote questionnaire and get a scored breakdown of this measure — provision by provision.
Sources
- https://elections.cdn.sos.ca.gov/ccrov/2026/july/26196jj.pdf
- https://ballotpedia.org/California_Proposition_42,_Prohibit_New_Taxes_on_Retirement_Holdings,_Personal_Assets,_and_Savings_and_Limit_Retroactive_Taxes_Initiative_(2026)
- https://ballotpedia.org/California_Proposition_42,_Prohibit_New_Taxes_on_Retirement_Holdings,_Personal_Assets,_and_Savings_and_Limit_Retroactive_Taxes_Initiative_(2026)
- https://www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures
- https://elections.cdn.sos.ca.gov/ccrov/2026/july/26196jj.pdf
- https://ballotpedia.org/California_Proposition_42,_Prohibit_New_Taxes_on_Retirement_Holdings,_Personal_Assets,_and_Savings_and_Limit_Retroactive_Taxes_Initiative_(2026)
- https://ballotpedia.org/California_Proposition_42,_Prohibit_New_Taxes_on_Retirement_Holdings,_Personal_Assets,_and_Savings_and_Limit_Retroactive_Taxes_Initiative_(2026)