California Proposition 41 — Prohibits New State Taxes That Exclude Revenues from State Spending Limit. Requires Audits for New State Special Taxes

What it does

Prohibits any new state taxes that exclude their revenues from the state spending limit approved by voters in 1979. For statewide special taxes, requires (1) a pre-election audit of programs that would receive funding from a voter-proposed special tax, and (2) recurring audits of programs funded by special taxes enacted 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. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Unknown net fiscal effect. Increased costs for the California State Auditor to implement new one-time and ongoing audit requirements of programs funded by special taxes. These costs would be mostly paid from the new revenues collected from the special taxes. Possible savings associated with implementing recommendations from the audits.

A YES vote means

When special taxes are proposed by voter initiatives, the California State Auditor would review programs funded by the tax before the initiative appears on the ballot. The California State Auditor also would regularly review programs funded by special taxes approved by voters or the Legislature. In addition, the state might not be able to exclude any new special tax spending from its spending limit.

A NO vote means

The California State Auditor’s responsibility to review government programs would not change. The state spending limit requirements would not change.

Needed to pass

A simple majority

Put on the ballot by

citizen initiative

Official text: source

Also on California ballots

• Proposition 1 — Authorizes Bonds for Housing Affordability Programs
• Proposition 2 — Increases State’s Rainy Day Fund
• Proposition 3 — Provides Permanent Funding for Schools and Health Care by Extending Existing Tax on High Incomes
• Proposition 4 — Repeals Prohibition Against Public Funding of Election Campaigns
• Proposition 5 — Changes Recall Election Process for Statewide Officers
• Proposition 37 — Creates Loan Program for Middle-Income Buyers of Qualified New Homes
• Proposition 38 — Authorizes Bonds for Immunology Medical Research
• Proposition 39 — Prohibits Citizens from Voting Unless They Present Government-Issued Identification
• Proposition 40 — Imposes One-Time Tax on Certain Taxpayers
• Proposition 42 — Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes
• Proposition 43 — Limits Voters’ Ability to Raise Revenues for Local Government Services
• Proposition 44 — Requires Community Health Clinics Spend 90% Of Revenue on Program Services
• Proposition 45 — Modifies Environmental Review for Certain Projects

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