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California's Prop 43 Is Trailing: Citizen-Led Local Taxes Would Keep the Simple-Majority Path

·Chase @ PropertyTaxDueDates.com

Proposition 43 is losing, 54.9% to 45.1%, in the California Secretary of State's count as of 8:08 a.m. on November 4. California counts ballots for weeks after Election Day, so these numbers will move, and the race hadn't been called when we published. Counties have until December 4 to report final results, and the state has until December 11 to certify them.

What Prop 43 Actually Is

Prop 43 is a constitutional amendment the Legislature put on the ballot (ACA 22), with the official title "Limits Voters' Ability to Raise Revenues for Local Government Services." It came out of a deal between state lawmakers and the Howard Jarvis Taxpayers Association to keep HJTA's broader "Save Prop 13" initiative — the one we wrote about in September — off the ballot.

That matters, because the version voters decided on is narrower. The measure adds one short section (4.5) to Article XIII A of the state constitution, the article Prop 13 created, and it does two things:

  • ›Two-thirds for special taxes, including citizen initiatives. Beginning January 1, 2027, no local government, "including the electorate of a local government exercising the initiative power," may impose, extend, or increase a special tax unless two-thirds of voters approve it. Special taxes proposed by cities, counties, and districts already needed two-thirds; this closes the gap opened by the California Supreme Court's 2017 Upland decision, which courts have since read to let citizen-initiated special taxes pass with a simple majority.
  • ›No new ad valorem property taxes by initiative. Local governments already can't add ad valorem taxes on real property beyond what the constitution allows (Prop 13's 1% levy and voter-approved bond debt). Prop 43 extends that bar to voters acting by initiative.

What Prop 43 does not do:

  • ›It doesn't change Prop 13's 1% property tax rate or the 2% annual cap on assessed value increases.
  • ›It doesn't include the original initiative's cap on real estate transfer taxes, or its provision voiding existing local taxes that broke the new rules, which put taxes like Los Angeles's Measure ULA "mansion tax" at risk. Those were in the version that was kept off the ballot.
  • ›It doesn't change general taxes, which still pass with a simple majority.

What Happens If the Result Holds

If Prop 43 fails, the "Upland" reading stands: a local special tax that reaches the ballot through a citizen initiative can still pass with a simple majority, while special taxes proposed by local governments still need two-thirds. That leaves the citizen-initiative route as the easier path.

What It Means for Your Property Tax Bill

For most homeowners: nothing on this year's bill. Your first California installment was due November 1 and is delinquent after December 10, and the second is due February 1 and delinquent after April 10. (See California property tax due dates for the details, including weekend extensions.)

Whether a broader "Save Prop 13" initiative returns in a future election is up to its backers; we'll cover it if it qualifies again.

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Information is for reference only. Tax laws vary by jurisdiction — consult a tax professional for advice specific to your situation.