Proposition 43
Limits Voters' Ability to Raise Revenues for Local Government Services
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.
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Fiscal impacts
Prop 43 raises no money and spends no money by itself. It changes the vote threshold a future local special tax must clear, so any effect on revenue depends on which local taxes are proposed after 2026 and how voters vote on them. The Legislative Analyst's Office estimates that local government tax revenues may not grow as much in the future because of the higher threshold, but says the actual impact is unknown.
Why is this on the ballot?
The Legislature put it there. It came out of a deal: the Howard Jarvis Taxpayers Association withdrew a broader initiative that would have restricted local taxing authority further, in exchange for the Legislature putting ACA 22 on the ballot.
According to Article XVIII of the California Constitution, amendments to the California Constitution initiated by the State Legislature must first be approved by a supermajority of both houses and the amendment must then be approved by voters with a simple majority of 50% + 1.
- Placed on ballot by: The California Legislature, via Assembly Constitutional Amendment 22. Adopted by both houses on June 25, 2026 (Assembly 68 to 2, Senate 35 to 1), and chaptered the same day as Resolution Chapter 132, Statutes of 2026.
- Author: Assemblymember Buffy Wicks (D-Oakland)