Proposition 43

Limit Voters’ Ability to Raise Revenues for Local Government Services

Limits voters' ability to pass voter-proposed local special taxes by increasing the percentage of votes needed to approve such ballot measures from a majority (over 50%) to two-thirds, beginning January 1, 2027.

Fiscal Impact: Possibility that local government tax revenues will not go up as much in the future due to a higher vote threshold for certain taxes.

See Endorsements for Proposition 43

Pro:

Supporters say Prop 43 protects taxpayers by restoring Proposition 13's two-thirds vote requirement to pass local special taxes, including sales taxes, real estate taxes and utility taxes. They argue that courts have allowed special interests to pass earmarked tax increases with fewer votes. Prop 43 closes this loophole, protecting taxpayers, homeowners and renters.

A YES vote on this measure means: Certain local government taxes would require two-thirds approval by voters.

YesOn43.com (Campaign Website)

Con:

Opponents say Prop 43 limits voters’ ability to fund essential local services including fire protection, 911 response, schools, roads, hospitals and affordable housing. They argue that it doesn't cut your taxes and lets just 33.4% of voters veto what nearly 67% want.

A NO vote on this measure means: Certain local government taxes could continue to be approved by voters with a majority vote.

Background

The State Constitution allows local governments to increase taxes with local voter approval. Tax increases can be put on a ballot by voters or a local governing board (such as a city council or board of supervisors). Increases in some types of local taxes require a two-thirds vote to approve them, while other types of taxes require a majority (more than half) vote to approve them. Some local tax increases are approved permanently, while others are approved for a limited period of time. Before those taxes expire, voters can be asked whether to extend them.

Proposal

Requires Certain Local Taxes Receive Two-Thirds Approval by Voters. Under current law, local taxes that are used for a specific purpose require a two-thirds vote to be approved. These are called special taxes. However, recent court decisions have allowed special taxes that are proposed by voters to be approved with a majority vote. Under Proposition 43, beginning on January 1, 2027, any new, increased, or extended local special taxes proposed by voters would require a two-thirds vote.

Fiscal Effects

Proposition 43 makes it harder for local governments to pass certain taxes. As a result, local governments’ tax revenues could be lower in the future than they otherwise would be. The actual revenue impact is unknown and would depend on future decisions by local governments and voters.

Source: LAO Analysis of Proposition 43

PPIC Statewide Survey: November Races and Legislative Ballot Measures September 2026

Official California Documents