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‘Billionaire tax’ Prop 40 and its rival props 41 and 42
We dive deep into Prop 40 and its rival props, 41 and 42, and what's at stake.
Under Proposition 42, the state would not be able to institute any new taxes on personal property, including retirement accounts, other than real estate. It would also prevent most new taxes from being applied retroactively.
What to keep in mind about these numbers
- For LAist's charts showing vote counts, we get numbers directly from the L.A. County and Orange County registrars of voters for local races. Totals are updated on our site as soon as possible after the registrars provide new tallies. For statewide races, counts come from the California Secretary of State's Office.
- Has your ballot been tallied yet? You can track the status of your ballot here.
- Keep in mind that, in tight races particularly, the winner may not be determined for days or weeks after election day. That's because early voting and mail-in ballots have fundamentally reshaped how votes are counted and when election results are known. The upshot: Ballots can be postmarked up to and including Election Day. They're counted as long as the ballot arrives within seven days of the election and that window contributes to the lag time before results are announced.
- In L.A. County, for example, daily updates on the counting are expected to take place at least once a day — usually around 5 p.m. — through Nov. 13. (There will be multiple updates on Nov. 5 and 6.) Then, the once-a-day counts will resume again on Nov. 17, 19, 25 and 27. The office is scheduled to certify election results by Friday, Nov. 27. In Orange County, There will be multiple updates after the polls close, and then daily updates weekdays at 5 p.m. until results are scheduled to be certified on or before Dec. 3.
- The California Secretary of State is scheduled to certify the election results on Dec. 11.
- Our priority during the vote count will be sharing outcomes and election calls only when they have been thoroughly checked and vetted by journalists. To that end, we will rely on official results and report when candidates concede. Otherwise, we rely on NPR and the Associated Press for race calls. We will not report the calls or projections of other news outlets. You can find more about NPR's and the AP's process for counting votes and calling races here and here.
Wondering how we got here? Here's the backstory to this race:
Understanding Prop. 42
Proposition 42 is partly an effort to block another measure voters will see on their ballot, Proposition 40. Also known as the billionaire’s tax, Proposition 40 seeks to establish a one-time 5% tax on the net worth of billionaires in California. (You can read more about Proposition 40 here.)
Proposition 42 would effectively kill Proposition 40, even if both measures pass: If Proposition 42 gets more votes than Proposition 40, the billionaire’s tax could be declared void, according to an analysis from the California Secretary of State.
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For example, under Proposition 40, a billionaire subject to the tax would have to pay based on their accumulated wealth, including wealth from their intellectual property and artwork and jewelry they have in the state. Proposition 42 would make it so such assets cannot be taxed.
Official title on the ballot: Prohibits new state personal property taxes and certain retroactive state taxes
Language you will see:
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.
What your vote means
- A "yes" vote means: The state could not establish new taxes on the ownership of financial assets or other personal property.
- A "no" vote means: The state would continue to have the option to establish new taxes on the ownership of financial assets or other personal property.
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Election day is just around the corner, get your notepads and pencils ready — it’s time for a one-hour cram session. -
Sharpen your pencils and get out your notebooks — it’s time for a cram session! -
LAist reporter Cato Hernández has been covering judicial elections since 2022 and they will help you navigate these particularly challenging pages on your ballot.
Here's what supporters say
- California's high cost of living and taxes have made living in the state difficult, and Proposition 42 aims to put a cap on any attempt to go further. For example: California’s constitution currently allows for taxes on things people own, such as art on display in a home, that haven't generated any taxable revenue. Proposition 42 would block such taxes.
- Notable endorsements: Los Angeles and Orange Counties Building and Construction Trades Council; California Professional Firefighters; California Society of Certified Public Accountants; several business groups, including the Valley Industry and Commerce Association and Greater Los Angeles African American Chamber of Commerce.
Here's what opponents say
- They criticize Proposition 42 for shielding billionaires from paying a one-time tax to help stabilize the healthcare system in California.
- Notable opponents: California Democratic Party; SEIU-United Healthcare Workers West; supporters of Proposition 40.
Potential financial impact
The California Secretary of State’s analysis found that, if approved, Proposition 42 could make it harder for the state to raise taxes in the future: “This could reduce future tax revenues. When and by how much future revenues would be reduced is unclear.”
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What it takes to win
A majority is needed to pass.
Watch the ballot cram session analysis
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Further reading
What questions do you have about this election?
You ask, and we'll answer: Whether it's about who's funding the campaigns or how to track your ballot, we're here to help you understand the 2026 election.