California Voters Reject Prop. 43, Protecting Local Tax Thresholds

California voters have rejected Proposition 43 in the November 2026 statewide election, voting 55.4% No to 44.1% Yes as of Friday, November 6, 2026 to preserve the simple-majority threshold for citizen-initiated local special taxes.

Upholding the 2017 Upland Precedent Over a 66.7% Supermajority Requirement

Placed on the ballot by the Howard Jarvis Taxpayers Association, Proposition 43 proposed a constitutional amendment requiring citizen-initiated local special sales taxes—those dedicated to specific purposes such as public transit, parks, or housing—to clear a two-thirds (66.7%) supermajority rather than a simple majority of more than 50%. Had it passed, Proposition 43 would have overturned the California Supreme Court's landmark 2017 ruling in California Cannabis Coalition v. City of Upland, which held that the two-thirds supermajority requirement applies to taxes placed on the ballot by city councils or county boards, not to measures qualified through citizen signature petitions.

Silicon Valley Taxpayers Association President Mark Hinkle had campaigned in favor of Proposition 43 alongside positions on statewide Propositions 1, 2, 3, 37, 38, 40, 44, and 45, arguing that special-interest coalitions use citizen signature drives to bypass the 66.7% supermajority threshold.

Protecting the $1 Billion Five-County SB 63 Regional Transit Measure and Municipal Revenues

Civic, business, and transit leaders across the Bay Area welcomed Proposition 43's rejection, noting that a retroactive or future 66.7% threshold would have jeopardized vital regional infrastructure financing. Among the most prominent citizen-initiated measures on the November 2026 ballot is SB 63, the 5-county Regional Transit Measure enacting a 0.5% sales tax for 14 years across Contra Costa, Alameda, San Francisco, San Mateo, and Santa Clara counties.

With SB 63 currently passing at 54.1% voter approval, preserving the simple-majority threshold secures approximately $1 billion per year in operating support for BART, Caltrain, Muni, AC Transit, and the Santa Clara Valley Transportation Authority (VTA)—including $264 million annually earmarked for VTA. VTA Board Chair and Campbell Councilmember Sergio Lopez stated that voters recognized the importance of maintaining local self-determination to fund transit corridors.

San Jose Silicon Valley Chamber of Commerce President and CEO Leah Toeniskoetter and San Jose Mayor Matt Mahan also praised Proposition 43's defeat. In June 2026, San Jose voters approved a citizen-initiated 2% hotel bed tax increase expected to generate $10 million annually to help close a $50 million city budget deficit. Santa Clara County Executive James Williams noted that local flexibility remains essential for county services, pointing to Santa Clara County's 2025 Measure A—a 0.625% general-purpose sales tax that required only a simple majority to raise $330 million annually for county hospitals.