What is it?

Prop 3 makes California's extra income tax rates on high earners permanent by deleting their 2030 expiration date from the state constitution.

Above the regular 9.3% rate, the state adds three higher brackets: 10.3%, 11.3%, and 12.3%. Voters set those rates with Prop 30 in 2012 and extended them with Prop 55 in 2016; they expire after the 2030 tax year. Prop 3 deletes that expiration date, so the rates keep applying until another vote of the people ends them. Prop 3 does not change the rates or the incomes they apply to, and it does not create a new tax.

Where the money goes

The money goes into the Education Protection Account that Prop 30 created, which is split 89% to K-12 schools and 11% to community colleges. If the account holds more than the school formula requires, half of the leftover, up to $2B in a year, goes to children's and family health care under Medi-Cal. Prop 3 does not change how any of that money is divided.

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