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 42 do?
Proposition 42 would make it much harder to create a wealth tax in California by prohibiting new taxes on the mere ownership of assets such as investment accounts, business interests and personal property — assets that are typically only taxed when they are sold or generate income. Like Proposition 41, which also attempts to block Proposition 40 (a wealth tax on billionaires), Proposition 42 would nullify Proposition 40 if it receives more votes, even if the billionaire tax also passes. It was placed on the ballot by opponents of the proposed billionaire tax.
What do supporters and opponents say?
- Reform California
- Building a Better California
- Google co-founder Sergey Brin
- Peace Officers Research Association of California
- California Professional Firefighters
- State Building and Construction Trades Council of California
- SEIU-United Healthcare Workers West
- California Democratic Party
Ballot text
PROHIBITS NEW STATE PERSONAL PROPERTY TAXES AND CERTAIN RETROACTIVE STATE TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. 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.
Source: California Secretary of State
