Prop. 41 explained: Voiding new taxes that skip the spending limit, and new audits

SAN JOSE - Proposition 41 is a citizen initiative that would amend the state Constitution to cancel certain new state taxes and add audits of tax-funded programs.

What it would do

According to the Legislative Analyst's Office (LAO), the measure would void any new state tax approved after Jan. 1, 2026, that excludes its revenue from the state appropriations limit, a 1979 cap on state spending.  Opponents say that would include Prop. 40 on this ballot.

The State Auditor would review proposed special-tax initiatives once their backers gather 25% of the needed signatures, and would audit programs paid for by new special taxes every four years.

Who would be affected

Billionaires who would pay the Prop. 40 tax, the health programs that would get its money, and future backers of new taxes would be most affected.

What it would cost

The LAO says the net effect on state revenue is unknown.  Audit costs would mostly be paid from the new tax revenue being audited.

Supporters and why

Supporters include the California Society of CPAs, the CalAsian Chamber of Commerce and the California Taxpayers Association.  They say taxpayers deserve proof that tax money works.

"Prop. 41 requires the State Auditor to conduct independent public audits of programs funded by proposed new taxes." - Argument in favor

Opponents and why

Opponents include Sen. Bernie Sanders and SEIU-United Healthcare Workers West, the main backers of Prop. 40.

"This is a billionaire-funded initiative designed specifically to undo the California Billionaire Tax, Prop. 40." - Argument against

Where the parties stand

The California Republican Party supports Prop. 41; the California Democratic Party opposes it.  In the IGS poll, 81% of Republicans and 13% of Democrats said yes.  PPIC found most Republicans and independents in support, compared with about three in ten Democrats.

The money

The Yes side's largest listed contributions come from Building a Better California, including $16 million, two $10 million checks, $7 million and two $5 million checks.  SEIU-UHW committees fund the No side.

Polling

In a Public Policy Institute of California (PPIC) survey of 1,086 likely voters taken Oct. 16-22 (margin of error plus or minus 3.8 points), 48% said yes and 49% no.  In a Berkeley Institute of Governmental Studies (IGS) Poll of likely voters taken Oct. 19-25 and released Oct. 29, 38% said yes, 47% no and 16% were undecided.

What your vote means

A yes vote means new state taxes that skip the spending limit would be void, and new audits would be required.  A no vote means current rules stay.

Source:  Secretary of State, Voter Information Guide, Prop. 41; Legislative Analyst analysis, Prop. 41; Official arguments and rebuttals, Prop. 41; Secretary of State Quick Guide to Props, Prop. 41; California Democratic Party endorsements; California Republican Party endorsements; PPIC Statewide Survey, October 2026; Berkeley IGS Poll Release #2026-22