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Proposition 41: Require audits of new tax programs

This explainer was originally published by our news partners CalMatters. Be prepared for California’s primary: Sign up for CalMatters' free election newsletter and be the first to know when they update the CalMatters 2026 Voter Guide with information on key races.

What does California Proposition 41 do?

This proposition would make it harder to pass new special taxes by requiring the state auditor to review any special tax proposal before it goes to voters. The auditor would assess whether the program that would receive funding could cut spending by at least 10% annually. Any new special tax approved by voters would count toward California’s spending limit, potentially triggering automatic refunds that reduce funding for other state programs. If this proposition receives more votes than Proposition 40 (a wealth tax on billionaires), Proposition 40 is nullified, even if Proposition 40 also passes.

California’s 2026 midterm elections will be held on Tuesday, Nov. 3, 2026. Get general information about the election, news coverage, an interactive ballot guide and results on election day.

What do supporters and opponents say?

Supporters

Supporters say key social programs are not getting enough funding despite California’s high taxes. They argue the state auditor should assess whether the programs that would benefit from special taxes are spending money wisely. Supporters also want these special taxes to count toward the state spending limit, making tax rebates to Californians more likely.

Opponents

The chief opponent is SEIU-United Healthcare Workers West, the sponsor of Proposition 40. The union argues that Prop. 41 is designed to trick voters into unknowingly blocking a wealth tax on billionaires. Prop. 41 isn’t about auditing waste in public programs, the union says; instead, it’s a way for billionaires to avoid paying taxes once on their huge wealth.

Ballot text

PROHIBITS NEW STATE TAXES THАТ EXСLUDE REVENUES FROM STATE SPENDING LIMIT. REQUIRES AUDITS FOR NEW STATE SPECIAL TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Nullifies state taxes enacted after January 1, 2026 that exempt their revenues from the voter-approved state spending limit. Requires pre-election and recurring audits of programs funded by new special taxes. Fiscal Impact: The net fiscal effect is unknown as it depends on future decisions by voters, the Legislature, and other policymakers.

Source: California Secretary of State

Campaign finance

California’s 2026 midterm elections will be held on Tuesday, Nov. 3, 2026. Get general information about the election, news coverage, an interactive ballot guide and results on election day.

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