Contest 12 of 14
Proposition 43
Limit's Voters' Ability to Raise Revenues for Local Government Services. Legislative Constitutional Amendment.
Fiscal Impact
Short Term
LAO gives no net estimate.
Long Term
LAO gives no net estimate — this is about local governments: their tax revenue may grow more slowly under the higher vote threshold.
Social Impact
- Voter-proposed local special taxes — taxes dedicated to a specific purpose — would need two-thirds voter approval instead of a majority, for measures approved after January 1, 2027.
- The LAO says the higher threshold could leave local government tax revenues lower in the future than they otherwise would be.
- Supporters say the two-thirds requirement will restore Proposition 13 protections and make new or higher local taxes harder to impose.
- Opponents say the two-thirds requirement will make local funding harder to approve for fire and police services, roads, schools, and health care.
A YES vote means:
Starting in 2027, local special taxes proposed by voters — taxes dedicated to a specific purpose — need two-thirds of voters to approve them, instead of a simple majority.
A NO vote means:
Voter-proposed local special taxes keep passing with a simple majority, just over 50%.
Cost (Legislative Analyst): Possibility that local government tax revenues will not go up as much in the future due to a higher vote threshold for certain taxes.
Source: CA Secretary of State, Official Voter Information Guide