California Voters Reject Prop 40 Billionaire Tax as Bond Measures Pass

Updated statewide ballot counts across California's 14 statewide propositions show voters splitting sharply between citizen-initiated tax proposals and legislatively referred bond and budget measures.

Voters Reject Prop 40 Billionaire Tax While Passing Prop 42 Repeal Safeguard

According to statewide vote tallies reported by The Center Square and The Press, California voters rejected Proposition 40 by a margin of 52.4% (3,966,849 No votes) to 47.6% (3,598,679 Yes votes). Sponsored by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), Proposition 40 sought to levy a one-time 5% tax on billionaire wealth to generate an estimated $100 billion over 5 years.

Companion measure Proposition 41 trailed by the same 52.4% (3,966,849 No) to 47.6% (3,598,679 Yes) margin, while voters approved Proposition 42—a competing business-backed measure designed to nullify the wealth tax—by 54.33% (4,150,258 Yes votes) to 45.7% (3,489,519 No votes). Howard Jarvis Taxpayers Association communications director Susan Shelley welcomed the rejection of Proposition 40, arguing the levy would have accelerated taxpayer out-migration.

Legislative Referendums: Propositions 1, 2, 3, and 5 Lead While Prop 4 Trails

Among the five measures placed on the ballot by the California Legislature:

• Proposition 1 (Education Governance): Approved with 59.4% (4,506,588 Yes votes) to 40.6% (3,084,042 No votes).
• Proposition 2 (Rainy Day Fund Reserve Rules): Approved with 59.6% (4,517,170 Yes votes) to 40.4% (3,068,289 No votes).
• Proposition 3 (High-Income Education Tax Extension): Approved with 58.7% (4,483,609 Yes votes) to 41.3% (3,160,538 No votes), extending higher income tax rates on top earners to fund public schools and community colleges.
• Proposition 4 (Local Infrastructure Voting Threshold): Trailing with 52% opposed (3,892,816 No votes) to 48% in favor (3,599,779 Yes votes).
• Proposition 5 (Recall Election Reform): Narrowly leading with 50.3% (3,706,839 Yes votes) to 49.7% (3,658,414 No votes).

Statewide Bond Measures and Citizen Initiatives: Props 37 through 45

Voters approved two major bond measures while rejecting four other statewide initiatives:

• Proposition 37 (Affordable Housing Bonds): Passed with 61% (4,605,778 Yes votes) to 39% (2,946,506 No votes).
• Proposition 38 (Immunology Research Bonds): Passed with 55.7% (4,221,039 Yes votes) to 44.3% (3,354,819 No votes), drawing praise from Stanford University Clinical Excellence Research Center director of research Bob Kaplan.
• Proposition 39 (Water & Clean Energy Bonds): Defeated with 58.6% opposed (4,504,293 No votes) to 41.4% in favor (3,187,450 Yes votes).
• Proposition 43 (Voter ID & Citizenship Verification): Defeated with 54.9% opposed (4,130,805 No votes) to 45.1% in favor (3,392,467 Yes votes).
• Proposition 44 (Community Clinic 90% Spending Mandate): Overwhelmingly rejected with 81.8% opposed (6,148,087 No votes) to 18.2% in favor (1,364,440 Yes votes).
• Proposition 45 (CEQA Permitting Exemptions): Defeated with 54.1% opposed (4,050,212 No votes) to 45.9% in favor (3,438,817 Yes votes).