Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes.
Prohibits new state taxes on personal property, including business interests, intellectual property, and financial assets (including assets in retirement and investment accounts). Prohibits new state taxes that apply retroactively based on the taxpayer’s conduct, activities, or a status that occurred before the new tax’s effective date. Applies to new taxes that are enacted or take effect on or after January 1, 2026. States that other voter-approved measures appearing on the same ballot are void if they conflict with this measure and this measure receives more affirmative votes.
A YES vote on this measure means: The state could not establish new taxes on the ownership of financial assets or other personal property.
A NO vote on this measure means: The state would continue to have the option to establish new taxes on the ownership of financial assets or other personal property.
Not published by the state
Possibility that tax revenues will not go up as much in the future.
YES ON PROP. 42: PROTECT YOUR RETIREMENT AND LIFE SAVINGS FROM STATE TAXES California is now the third most expensive state to retire in the nation. Every year, higher costs and taxes make it harder to save. An April 2026 survey found 73% of Californians know someone who has had to delay retirement for financial reasons. CALIFORNIA CONSTITUTION CURRENTLY ALLOWS DOUBLE TAXATION Yet, California’s Constitution currently allows the Legislature to tax the value of our personal property like retirement funds and savings accounts, even though residents already pay income tax on that money when they earn it. This means politicians can tax the same money twice: once when you earn it, and again when it is sitting in your retirement funds or savings accounts. That’s double taxation! In the last few years alone, the Legislature and special interests have introduced six separate proposals that would tax retirement and savings accounts. Taxes and cost of living are already too high in California—we need protections against taxes on our personal property and retirement savings. PROP. 42 PROHIBITS TAXES ON RETIREMENT AND SAVINGS Prop. 42 amends the state Constitution to protect Californians from this double taxation by special interests and politicians. Specifically, the measure: • Prohibits new taxes on personal property, such as retirement funds, pensions and savings accounts; • Prohibits retroactive taxes; and • Prohibits all new taxes on retirement and savings this year and in the future. PROP. 42 PROTECTS ALL FORMS OF RETIREMENT FUNDS AND SAVINGS FROM NEW TAXES Roughly 80% of Californians report having some form of retirement fund or savings, including young workers just beginning to save; teachers, firefighters and police officers with pensions; and retirees who depend on their savings for financial security. This measure protects all forms of personal property from new taxes, including 401ks, pensions, IRAs and personal savings. “Prop. 42 protects Californians’ savings and retirement. Whether it’s a union member’s hard-earned pension or a small business owner’s IRA, new taxes on retirement shouldn’t stand between people and the security they’ve planned for.”—Chris Hannan, President, State Building and Construction Trades Council of California representing hundreds of thousands of union construction trades workers. PROP. 42 PROHIBITS UNFAIR RETROACTIVE TAXES The state should not be able to pass new taxes that apply retroactively to money that taxpayers earned in the past. Prop. 42 requires any new taxes to apply only after voters have approved them. “It’s a question of fairness and common sense. People plan their retirement for years—they deserve stable, predictable rules that don’t change after years of saving and planning. Prop. 42 provides that certainty.”—Sean Morgan, licensed financial advisor Prop. 42 is supported by a broad coalition of seniors, veterans, small business owners, blue-collar workers, retirees, including groups like the California Professional Firefighters and Disabled American Veterans, Dept. of California. Californians are already struggling with high costs of living and high taxes. Many work their entire lives to achieve some measure of retirement security. It should be illegal for politicians and special interests to tax our retirement and savings. You earned and saved it. Now we need to protect it. Please join us in voting Yes on 42. YesonProp42.org
Michael Hedges, President; California Small Business Association; Shelley Huff, Commander; AMVETS, Department of California; Jennifer Yoder, Board Member; California Senior Alliance
Suzanne Jimenez, Chief of Staff; SEIU-United Healthcare Workers West
VOTE NO ON PROP. 42. This is a billionaire-funded initiative designed specifically to undo the California Billionaire Tax, Prop. 40. PROP. 42 WOULD CANCEL OUT THE BILLIONAIRE TAX Prop. 42 was put on the ballot for one reason—because billionaires don’t want to pay their fair share. This initiative was created to trick voters like you into making a billionaire tax impossible to enforce. That’s why you must vote NO. Don’t fall for the billionaires’ lies. Prop. 42 isn’t about preventing new taxes on personal property. It’s about preventing one specific tax that billionaires want to avoid, because they’d rather millions of working people lose healthcare than pay a modest, one-time tax on their extreme wealth. PROP. 42 WAS FUNDED BY BILLIONAIRES WHO WANT YOU TO PAY MORE FOR HEALTHCARE One of Prop. 42’s main funders is Google founder and Trump donor Sergey Brin, whose wealth has DOUBLED to nearly $300 billion since Trump’s election. Now he’s spent over $57 million to fund sham measures like Prop. 42 that attempt to cancel out a billionaire tax. U.S. Senator Bernie Sanders called this arrogant move by Brin “unacceptable.” Donald Trump took money out of working peoples’ pockets and gave it to billionaires like Brin through massive tax breaks. Now, the billionaires backing Prop. 42 want YOU to pay more for your healthcare. VOTE NO ON PROP. 42 IF YOU SUPPORT THE BILLIONAIRE TAX We have a chance to make billionaires pay their fair share to keep hospitals open and healthcare affordable for California’s working families. Vote NO on Prop. 42.
Suzanne Jimenez, Chief of Staff; SEIU-United Healthcare Workers West
Darrell Roberts, President; California Professional Firefighters; Chris Hannan, President; State Building and Construction Trades Council of California; Brian R. Marvel, President; Peace Officers Research Association of California
Both columns use the same layout. Text is quoted from the official state guide. Views expressed belong to the argument authors.