Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes

The measure would limit future state tax options involving retirement accounts, investments, business interests, and other personal property. The Legislative Analyst says this could mean state tax revenues do not increase as much in the future.

What it does ​

• Would prohibit state laws and constitutional provisions enacted on or after January 1, 2026, from taxing ownership or control of retirement holdings, personal savings, and other tangible or intangible personal property.
• Would generally prohibit new state taxes from creating liability based on conduct, activities, residency, or status before the tax takes effect.
• Would allow legislative retroactive taxes of up to 365 days when the Governor declares specified emergencies or a fiscal emergency and the revenue is limited to that response.
• Would leave taxes first collected on or before December 31, 2025, and taxation of real property unchanged.
• Would void a conflicting statewide ballot measure approved at the same election if this measure receives more affirmative votes.

Who it affects ​

• People who hold pensions, retirement accounts, investment accounts, digital assets, intellectual property, or other personal property.
• Businesses and people with business interests or other assets used to produce income or savings.
• The state government when considering future taxes or retroactive tax changes.

Context ​

California taxes some personal property, such as vehicles and business equipment, while it does not tax owning financial assets such as stocks and investment accounts. California may tax income from financial assets, and this measure would not change taxes already in effect by December 31, 2025.

A yes vote means ​

A yes vote would prohibit new state taxes on ownership or control of covered personal property and generally prohibit new state taxes from applying retroactively, subject to a limited emergency exception.

A no vote means ​

A no vote would leave the state able to enact future taxes on personal property and retroactive taxes under existing constitutional and legal limits.

Fiscal effect ​

The Legislative Analyst's Office estimates:

• Possibility that tax revenues will not go up as much in the future.

Official sources ​

• Official voter guide page
• Legislative Analyst's analysis
• Arguments for and against
• Full text (PDF)