What is it?

Prop 43 requires a two-thirds vote to pass a local special tax, no matter who put it on the ballot.

A "special tax" is a tax for a specific purpose, like a parcel tax for schools or a business tax that pays for homeless services. Prop 43 does not touch general taxes, which go into the general fund and still pass with a simple majority.

What changes

From 1978, when voters passed Prop 13, until 2017, every local special tax needed a two-thirds vote. A 2017 California Supreme Court ruling, California Cannabis Coalition v. City of Upland, changed that: courts now let a special tax pass with 50% plus one if voter signatures put it on the ballot. San Francisco used that route in 2018 to pass Prop C, the homelessness gross receipts tax, with 61%.

Starting January 1, 2027, Prop 43 restores the two-thirds rule for citizen initiatives. It covers cities, counties, charter cities, and special districts, including school districts. It also bars voter initiatives from imposing a tax based on a property's value; local governments already cannot, and the regular 1% Prop 13 property tax is unchanged.

Read the full annotated legal text →