The state can't create new taxes on owning financial assets or other personal property, and new state taxes are limited in how far back they can apply.
Proposition 42 · California · Nov 3, 2026
Personal property tax restrictions
Official title: Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes. Initiative Constitutional Amendment.
Prohibits new state taxes on owning personal property and certain retroactive taxes.
At a glance
Tax limit- Does it raise taxes?
- Bans new state taxes on owning financial assets (like stocks or retirement accounts) or other personal property, and limits taxes that reach back to past income or events.
- Estimated cost or revenue
- Could reduce future state tax revenue; amount unknown.
- Who pays
- Not applicable (limits future taxes).
- Where the money goes
- Not yet verified
- How long
- Not yet verified
Worth knowing: If Props 40 and 42 both pass and 42 gets more yes votes, a court could block Prop 40.
From the official voter guide and the state’s fiscal analysis. Estimates are the state’s, not ours.
Your choice
Saved privately on this device.What your vote does
The state keeps its current power to propose such taxes.
How the money works
TypeTax limit
Cost, who pays and where the money goes are in “At a glance” above.
What your guides say
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Why they disagree
Protects retirement accounts, savings and personal property from new taxes, and stops taxes on money earned in the past.
Official ballot argument for (summary)Funded by billionaires to block Prop 40, not to protect retirement savings.
Official ballot argument against (summary)Who’s funding it
We haven’t loaded campaign-finance filings for Proposition 42 yet. You can look them up directly:
Sources
- California Secretary of State
Proposition 42: Official Voter Information Guide · Official title, summary, vote effects and fiscal impact
Checked Oct 31, 2026 - Easy Voter Guide (League of Women Voters of California Education Fund)
Easy Voter Guide, November 3, 2026 · State propositions
Checked Nov 1, 2026