Proposition 41: Audits of new taxesState Auditor reviews of new special taxes; new taxes count under the spending limit
Read the full text of the measure: Official Voter Information Guide (PDF)
In plain words
A "special tax" is a tax whose money goes to one purpose. The "state spending limit" caps how much tax money the state can spend each year. For a citizen-proposed special tax, the State Auditor would audit the programs it would fund before it goes on the ballot and look for ways to cut their yearly costs by 10%; a summary would go in the voter guide. Programs paid for by special taxes passed after Jan. 1, 2026 would be audited every four years. New taxes could not be left out of the spending limit. If it gets more yes votes than Prop. 40, a court could block Prop. 40. (lao.ca.gov (Legislative Analyst's Office) )
Before and after
| Question | Today | If it passes |
|---|---|---|
| Audit before a citizen special tax reaches the ballot | No | Yes, with a summary in the voter guide |
| Ongoing audits of programs paid by new special taxes | No requirement | Every 4 years for taxes passed after Jan. 1, 2026 |
| Can a new state tax be left out of the spending limit? | Yes, if the measure says so | No |
Numbers from the official ballot title (ballot title ); also see (lao.ca.gov (Legislative Analyst's Office) )
Biggest change
- New state taxes could no longer be excluded from the state spending limit; the State Auditor would audit programs funded by new special taxes. source: lao.ca.gov (Legislative Analyst's Office)
- Says other measures on the same ballot are void if they conflict with it and it gets more yes votes. source: sos.ca.gov (Official Voter Information Guide)
Who it affects most: People and groups who propose new state taxes, programs funded by them, and the outcome of Prop. 40.
Cost to the state: Net effect unknown. State Auditor costs likely in the low millions of dollars a year and growing; a few hundred thousand dollars per qualified initiative for the voter guide; possible savings if recommendations are adopted (Legislative Analyst).
Our plain-words summary. Every line points to its source.
What your vote means
New special taxes get State Auditor reviews before the vote and every 4 years after, and new taxes count under the spending limit.
No new audit rules, and the spending-limit rules for new taxes stay as they are.
Our one-line summary. The official "What your vote means" statements are in the Secretary of State's Official Voter Information Guide, linked below.
Why people want it, and why others object
Why this is on the ballot
Voters put this on the ballot by signing a petition. It changes the state constitution, so only another statewide vote can change it back. It passes with a simple majority.
- Opponents of the billionaire tax (Prop. 40) placed Prop. 41 on the ballot. source: CalMatters
Touches the state's tax-limit rules: California's spending limit and local tax votes, in plain words, explained.
Conflicts with another measure
- If Proposition 41 gets more yes votes than Proposition 40, courts could find that they conflict, which could block Proposition 40 even if it passes (Legislative Analyst). source: lao.ca.gov (Legislative Analyst's Office)
Why supporters want it
- Official argument in favor: "Prop. 41 requires more accountability, transparency and trackable progress of programs funded by our taxes." Signed by Denise LeDuc Froemming (California Society of CPAs), former State Auditor Tom Hayes and Robert Gutierrez (California Taxpayers Association). source: voterguide.sos.ca.gov (Secretary of State)
Why opponents object
- Official argument against: "Prop. 41 isn't about auditing new taxes"; opponents say it is a billionaire-funded measure to undo Prop. 40. Signed by Suzanne Jimenez (SEIU-United Healthcare Workers West). source: voterguide.sos.ca.gov (Secretary of State)
Who backs each side
- For: CA Society of CPAs, CalAsian Chamber of Commerce, California Taxpayers Association, Reform California, Sergey Brin, Stewart Resnick. Against: U.S. Sen. Bernie Sanders, SEIU-UHW, California Democratic Party. source: CalMatters
- Money (Secretary of State, as of Oct. 6, 2026): "Yes on 41 - Californians for Transparency and Accountability" reported $58,376,446. Opposing: "Tax the Ultra-Rich Now, Yes on 3 & 40, No on 41 & 42" reported $703,494. source: sos.ca.gov (Secretary of State)
In each side's own words where we could find them, quoted or summarized with a link to the source. We don't endorse either side.
What you will see on your ballot
Official ballot wording, word for word (tap to open)
The official ballot title, word for word from the Secretary of State's Official Voter Information Guide .
PROHIBITS NEW STATE TAXES THAT EXCLUDE REVENUES FROM STATE SPENDING LIMIT. REQUIRES AUDITS FOR NEW STATE SPECIAL TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT.
YES
NO
Official title copied word for word from the Official Voter Information Guide (page 58). The title and summary are prepared by the Attorney General.
Official summary by the Attorney General (tap to open)
Prohibits any new state taxes that exclude their revenues from the state spending limit approved by voters in 1979. For statewide special taxes, requires (1) a pre-election audit of programs that would receive funding from a voter-proposed special tax, and (2) recurring audits of programs funded by special taxes enacted after January 1, 2026. States that other voter-approved measures appearing on the same ballot are void if they conflict with this measure and this measure receives more affirmative votes.(sos.ca.gov (Official Voter Information Guide) )
Latest news
Recent reporting from a range of outlets, newest first. We link to it; we don't endorse it.
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Full text of the measure
The full text of the proposed law is printed in the Official Voter Information Guide. Read it in the Official Voter Information Guide (PDF) .
Read more
- Secretary of State: Official Voter Information Guide, Nov. 3, 2026 (PDF)
- Official Voter Information Guide: Proposition 41
- Official arguments and rebuttals
- Legislative Analyst's analysis
We link to analysis from several sources; we don't endorse it.