Two measures on the Tuesday, Nov. 3 ballot would change how California state and local governments raise taxes, including in Folsom, El Dorado Hills and Cameron Park.

Propositions 41 and 43 both aim to restrict new taxes. Prop. 41 targets state-level special taxes. Prop. 43 raises the bar for voter-initiated local special taxes. The spending cap both measures reinforce, called the Gann Limit, applies to most local governments in the state, according to the Legislative Analyst's Office.

Prop. 41: state taxes and the spending cap

Prop. 41 would nullify any state tax taking effect on or after Jan. 1, 2026, if its revenue is exempted from the Gann Limit, the voter-approved spending cap established by Proposition 4 in 1979, according to the California Secretary of State's Voter Information Guide. The Gann Limit caps per-person government spending at 1978–79 levels, adjusted over time. When state or local governments exceed the cap two years in a row, excess revenue must be split between taxpayer rebates and funding for K-12 schools and community colleges.

The measure would also require the State Auditor to review programs funded by new special taxes before an election. Ongoing audits would follow every four years.

One wrinkle: Prop. 40, also on the Tuesday, Nov. 3 ballot, could conflict with Prop. 41. If both pass, the measure with more "yes" votes takes effect and could block the other from becoming law, according to the Legislative Analyst's Office.

The fiscal effect is unknown.

Supporters include the California Taxpayers Association and the CalAsian Chamber of Commerce. Opponents include U.S. Sen. Bernie Sanders and SEIU United Healthcare Workers West.

Prop. 43: raising the bar for local special taxes

Under current law, local governing boards need a two-thirds vote to place a special tax on the ballot. But a 2017 California Supreme Court ruling in California Cannabis Coalition v. City of Upland found that citizen-initiated special taxes could pass with a simple majority, according to Ballotpedia.

Prop. 43 would close that gap. Starting Jan. 1, 2027, any new, increased or extended local special tax proposed by voters would need two-thirds approval, according to the Legislative Analyst's Office.

Susan Shelley, vice president of communications at the Howard Jarvis Taxpayers Association, told The Center Square on Friday, Oct. 2 that government has been "hiding behind citizen groups to raise taxes with this loophole."

The fiscal impact, according to the Legislative Analyst's Office: local government tax revenues may not grow as much in the future because of the higher vote threshold.

Supporters include the California Taxpayers Association and the Family Business Association of California. Opponents include California Professional Firefighters and the California Federation of Teachers, who argue in the Voter Information Guide that the measure would limit voters' ability to fund police, fire, roads and schools.

Polling and key dates

A Public Policy Institute of California poll conducted Sept. 4–10 found 51% of likely voters supported Prop. 41, while 51% said they would oppose Prop. 43, as reported by GV Wire. The poll is the most recent publicly available survey on these measures.

County elections officials began mailing ballots to registered voters Monday, Oct. 5. The last day to register online is Monday, Oct. 19. Early vote centers open Saturday, Oct. 24 in some counties and Saturday, Oct. 31 statewide. Polls are open 7 a.m. to 8 p.m. on Tuesday, Nov. 3.