What is it?

Prop 41 does two things. Before voters decide on a new special tax, the State Auditor must audit the programs the tax would fund. And new state taxes can no longer be exempt from the state spending limit, the cap voters approved in 1979.

Audits

Once backers of a special tax initiative (a tax earmarked for specific purposes) certify they have gathered 25% of the signatures required to qualify, the State Auditor must start an audit of every program the tax would fund. If the initiative qualifies, the audit's summary is printed in the state voter information guide. Special taxes passed on or after January 1, 2026 also get a repeat audit every four years.

Spending limit

Any state tax enacted or taking effect on or after January 1, 2026 cannot be exempt from the spending limit; the state cannot impose, collect, or enforce such a tax.

Conflicting measures

Prop 40, the one-time 5% tax on billionaire net worth on this same ballot, routes its revenue into a fund that does not count toward the spending limit, and Prop 41's conflicting-measures clause deems a same-ballot measure with such a tax to be in conflict. If both pass and Prop 41 gets more Yes votes, all of Prop 40's provisions become null and void. Neither measure names the other; a court would decide whether Prop 40 falls inside the clause.

Read the full annotated legal text →