Summary
- Newsom endorsed Proposition 42 on October 9.
- The proposal restricts new taxes on personal property.
- California voters decide the measure November 3.
The endorsement
California Governor Gavin Newsom endorsed Proposition 42 on October 9, supporting a measure that would restrict future state wealth taxes and counter a separate billionaire-tax proposal. CalMatters reported that his position puts him at odds with the state Democratic Party and some labor unions ahead of the November 3 election. [1]
The Secretary of State’s official summary describes Proposition 42 as a constitutional amendment prohibiting new state taxes on ownership of personal property and certain retroactive taxes. It would also nullify conflicting taxes enacted after January 1, 2026. Personal property includes possessions other than real estate, making the proposal broader than a restriction on one particular tax. [2]
The competing proposal
CalMatters reported that Proposition 42 would cancel out Proposition 40, which proposes a one-time 5% levy on assets of billionaires who lived in California on January 1. The outlet identified Google co-founder Sergey Brin as a financial backer of the opposing measure and said the billionaire-tax proposal would direct 90% of receipts toward Medi-Cal. [1]
Newsom has opposed state-level asset taxes because of concerns that wealthy residents would leave, reducing income-tax revenue, according to CalMatters. His endorsement nevertheless drew criticism from supporters of the billionaire levy. The disagreement concerns both the immediate healthcare-funding proposal and whether future legislatures should retain authority to introduce taxes on assets. [1]
What voters decide
The official voter guide says a yes vote would prevent new taxes on ownership of financial assets or other personal property. A no vote would leave that option available to the state. Its supporting and opposing arguments are campaign positions: supporters emphasize retirement savings, while opponents argue the measure is designed to defeat the billionaire tax. [3]
The Secretary of State’s quick guide identifies California Professional Firefighters and the State Building and Construction Trades Council among supporters, and Senator Bernie Sanders and SEIU United Healthcare Workers West among opponents. Its fiscal summary says future tax receipts might grow less than they otherwise would. Newsom’s endorsement itself does not enact the restrictions; voters must decide the amendment. [2]