Update, Nov 4: Prop 43 is trailing 54.9% to 45.1% in the early count, and the race hasn't been called. Read the latest.
Updated October 28, 2026. We first published this post in September, describing the "Save Prop 13" initiative as it had qualified. That version is no longer on the ballot. In a June deal with the Legislature, its backers withdrew it in exchange for a narrower constitutional amendment, which voters will see as Proposition 43. This post now describes Prop 43 as written.
California's Proposition 13 has shaped property taxes in the state since voters passed it in 1978, capping the general tax rate at 1% of assessed value and limiting annual assessment increases to 2% for as long as a property isn't sold. Prop 43 doesn't touch either of those. It deals with how new local taxes get approved.
How "Save Prop 13" Became Prop 43
The Howard Jarvis Taxpayers Association (the group that helped pass the original Prop 13) qualified an initiative called the Local Taxpayer Protection Act to Save Proposition 13 for the November 2026 ballot. The Legislature had its own counter-measure lined up, ACA 13, which would have required measures like HJTA's to pass by the same higher threshold they impose.
Before the June 25 deadline to finalize the ballot, both sides stood down. HJTA withdrew its initiative, lawmakers pulled ACA 13, and the Legislature passed ACA 22 (Assemblymember Buffy Wicks) to put a narrower version on the ballot. HJTA describes ACA 22 as "the core of the Local Taxpayer Protection Act," "exclusively focused on restoring the two-thirds vote requirement in Proposition 13."
The official ballot title is "Limits Voters' Ability to Raise Revenues for Local Government Services."
What Prop 43 Actually Does
Prop 43 adds one short section (4.5) to Article XIII A of the state constitution, the article Prop 13 created. 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. A special tax is one raised for a specific purpose, like a parcel tax for schools or a sales tax dedicated to transit.
- ›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 same bar to voters acting by initiative.
It needs a simple majority statewide to pass.
Why the "Upland" Decision Is the Crux
Prop 13 and the measures that followed it require a two-thirds vote for special taxes proposed by cities, counties, and districts. In 2017, the California Supreme Court decided California Cannabis Coalition v. City of Upland, and courts have since read it to mean those limits restrain local governments, not voters using the initiative process. Since then, several citizen-initiated special taxes have passed with a simple majority, including San Francisco's 2018 measures for homelessness services and child care.
Supporters of Prop 43 call that a loophole Prop 13 never meant to allow. Opponents argue the higher bar would let a third of voters block measures most voters support. Either way, if Prop 43 passes, the citizen-initiative route stops being the easier path to a special tax.
What Prop 43 Does Not Do
- ›It doesn't change Prop 13's 1% rate or 2% assessment cap.
- ›It doesn't cap real estate transfer taxes. The withdrawn initiative would have limited local transfer taxes to the state's baseline rate (about 0.11%) and voided existing local taxes that broke its rules at the end of the second year after passage, which put taxes like Los Angeles's Measure ULA "mansion tax" at risk. None of that is in Prop 43.
- ›It doesn't reach back. The two-thirds rule starts January 1, 2027, so special taxes voters already approved stay in place. Renewing or raising one after that date would need two-thirds.
- ›It doesn't change general taxes, those raised for general government purposes, which still pass with a simple majority.
What It Means for Your Property Tax Bill
For most homeowners: nothing on this year's bill. Your first California installment is still due November 1 and 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.)
The Legislative Analyst's Office sums up the fiscal effect as a "possibility that local government tax revenues will not go up as much in the future." If Prop 43 passes, the place you'd notice it is the special-tax lines on future bills: fewer new parcel taxes are likely to clear a two-thirds bar. We'll post the result after the November 3 election.