California Voters Back New Taxes Despite Defeat of Billionaire Levy
While Prop 43 failed to restore a key tax protection, residents approved multiple bond measures and extended the state's high income tax rates.
By Tyler Khalil ·
California's highest income tax rates in the nation were extended by voters in the November 2026 election, a result that stands alongside the approval of several new state and local bond measures. These financial commitments occurred even as the state faced a wave of new tax increases and a failure to pass a measure designed to protect property owners from future local tax hikes.
The Howard Jarvis Taxpayers Association reported that Proposition 43 appears to have failed in the recent vote. The measure sought to restore a provision of Proposition 13, which originally required a two-thirds vote of the local electorate to approve any local tax for a specific purpose. Court decisions had previously allowed special taxes to bypass this requirement if they were placed on the ballot via a citizens' initiative. Jon Coupal, president of the association, noted that this legal shift led to what he described as collusion between local government entities and special interests.
The association conducted a statewide campaign to support Proposition 43, utilizing radio and television advertising, interviews, and newspaper articles. A grassroots effort distributed thousands of signs and doorhangers across the state. Despite these efforts, the measure came up short in the voting process.
Voters also rejected Proposition 40, a wealth tax targeting billionaires. Coupal stated that many Californians did not believe the tax would remain a one-time imposition or that it would not eventually extend to individuals who were not billionaires. He added that the mere presence of the measure on the ballot convinced many of the state's most productive individuals to leave California.
The association attributed the election results to a national environment driven by high costs of living, a lack of affordable housing, and the price of gas. These factors drove voters to seek change, often leading them to vote for higher taxes that further increase living expenses. Coupal cited polling that indicates Californians are concerned about the cost of living yet frequently support tax hikes.
The association will continue to inform voters about the state's governance, tax climate, and regulatory burdens. Coupal pointed to the history of Howard Jarvis, who failed on four attempts to secure property tax relief starting in 1968 before succeeding on the fifth try in 1978. The organization plans to double its efforts to educate voters on how Proposition 13 protects them and how government spending affects their wallets.
The election results mark a continuation of the long-standing effort to defend taxpayer interests in California. The association remains active in its advocacy, noting that political defeats can often serve as a foundation for future victories. Members and supporters are encouraged to remain engaged in the ongoing process of informing the public about the state's fiscal policies.
