Prop 42 Could Block California Billionaire Wealth Tax Measure

California voters will decide two competing tax measures in the November 2026 election, with Proposition 42 potentially preventing Proposition 40, a proposed California Billionaire Wealth Tax, from taking effect if Prop. 42 receives more affirmative votes.

According to KSBY News, Proposition 42 includes language stating that conflicting measures involving taxes on retirement holdings, personal savings, or certain retroactive tax liabilities would become void if Prop. 42 receives more votes.

Tax expert and retired election law attorney Chuck Bell described Proposition 42 as a complex ballot strategy and explained that the measure only needs one more vote than Proposition 40 to take priority.

"It's a little bit of a Rubik's Cube," Bell said.

Bell said competing ballot measures are not unusual when opponents attempt to present an alternative proposal that appeals to a broader group of voters. He noted that Prop. 42 has support from groups including firefighters, building trades, and some veterans.

"If you can get diverse groups of people who seem to represent a broader segment of the public than just wealthy people, that's a win for you, and so that's what they do," Bell said.

Bell also said building trade groups oppose Proposition 40 because they believe the measure could affect businesses connected to higher-income residents and property activity.

"Their reason for it is Prop. 40 may be a tax on the wealth of billionaires, but it's absolutely a job killer and will cause businesses that have already been fleeing California in droves to do even more," Bell said.

Bell added that Proposition 42's wording could make it more appealing to voters who are concerned about personal savings and retirement accounts.

"[Prop. 42] sounds every bit as good, maybe better, more alarming than the other measure and has its own purpose that you can point to positively," Bell said.

The two initiatives reached the ballot after separate filings in late 2025 and early 2026. Attorney General Rob Bonta's office issued official titles and summaries for the measures, including the final Prop. 42 title: "Prohibits New State Personal Property Taxes and Certain Retroactive State Taxes."

Voters interviewed by KSBY News said they were uncertain about the competing tax proposals. Santa Barbara County voter Angie Balderas said she relies on discussions with others when reviewing propositions.

"I think there probably is some confusion with propositions," Balderas said.

San Luis Obispo voter Dan Weeks said he compares multiple sources and voter materials before making decisions on ballot measures.

"I basically look at what multiple newspapers said of what they say and why. When I look at the voter pamphlet, both sides of whatever sound like the world will stop, no matter which direction I vote," Weeks said.