Retirement and Personal Savings Protection Act
Plain-English Summary
Proposition 42 seeks to prohibit new personal property taxes and certain retroactive taxes, specifically targeting taxes enacted after January 1, 2026, on retirement holdings, individually owned assets, and other personal savings. This measure is intended to counteract Proposition 40, a 'billionaire tax' also on the ballot, by making it retroactively void if both pass and Proposition 42 receives more votes.
What each outcome does
If Proposition 42 passes, taxes enacted after January 1, 2026, would be prohibited from being imposed on retirement holdings, individually owned assets, and other forms of personal savings, with exceptions for certain declared emergencies. This would effectively void Proposition 40 if Proposition 42 receives more votes.
If Proposition 42 fails, the state would not be prohibited from enacting new personal property taxes or certain retroactive taxes on retirement holdings and personal savings after January 1, 2026. Proposition 40, the 'billionaire tax,' would not be directly impacted by the outcome of Proposition 42.
Who is funding each side
BallotPulse is non-partisan. We summarize each outcome in plain English and disclose the money on both sides. We do not tell you how to vote. Always read the official ballot text and decide for yourself.