The Question

Should voter-sponsored local special taxes require two-thirds voter approval instead of a simple majority vote?

The Situation

California law allows local governments and local voters to place tax measures on the ballot. 

• Some tax measures, known as special taxes, must be used for a specific purpose such as transportation, public safety, schools, parks, libraries, or affordable housing.
• Under current law, local governments generally must obtain two-thirds voter approval before imposing, increasing, or extending a special tax. 
• However, California court decisions have allowed certain voter-sponsored special taxes placed on the ballot through the initiative process to be approved by a simple majority rather than a two-thirds majority.
• California’s Constitution, including Proposition 13 (1978), places limits on certain local taxes and property taxes. 
• Proposition 43 addresses how certain local special taxes and property tax-related initiatives may be approved in the future.

The Proposal

Proposition 43 would amend the California Constitution effective January 1, 2027.

• Local special taxes proposed through the voter initiative process would require two-thirds voter approval rather than a simple majority.
• Voter-sponsored local special taxes that seek to impose, increase, or extend a tax would be subject to the same approval threshold generally applied to local government-sponsored special taxes.

The measure was placed on the ballot by the California Legislature and passed with bipartisan support.

Fiscal Effects

According to the Legislative Analyst’s Office, Proposition 43 could result in lower local government tax revenues in the future because voter-sponsored local special taxes would face a higher approval threshold. The actual fiscal effect is unknown and would depend on future tax proposals and voter decisions.

Supporters Say

• Prop 43 restores the two-thirds vote requirement that some believe voters intended under Proposition 13.
• All local special taxes should be subject to the same voter-approval standard, regardless of who places the measure on the ballot.
• Taxes dedicated to a specific purpose should require broad voter support before they are approved.
• The measure closes what supporters describe as a loophole created by court decisions.

Opponents Say

• Proposition 43 would make it harder for communities to fund local services such as schools, roads, public safety, affordable housing, and health care.
• The measure would allow a minority of voters to block tax measures supported by a majority of voters.
• Local communities should be able to approve tax measures through majority vote.
• The initiative process provides voters with a direct way to address local needs when elected officials do not act.