What Is Prop 43, and What Would It Change for North County Homeowners?

by Zach Arrington

Updated October 2026

Proposition 43 would require a two thirds vote to pass any new, increased or extended local special tax that voters themselves put on the ballot by petition, starting January 1, 2027. A YES vote means those voter proposed special taxes would need two thirds approval; a NO vote means they could continue to pass with a simple majority. For a North County homeowner, the key point is that Prop 43 does not change any tax you pay today; it changes how hard it is for certain future local taxes to pass.

I'm Zach Arrington, Broker Associate with Real. I work with buyers and sellers in coastal North County, from Carmel Valley and Del Mar to Solana Beach, Encinitas, Cardiff by the Sea and Rancho Santa Fe. This post explains what Prop 43 says, using the official analysis and measure text. I'm not telling anyone how to vote.

What Prop 43 would do

Prop 43 would raise the vote needed to pass local special taxes that are proposed by voters through the initiative process from a simple majority to two thirds. It is a legislative constitutional amendment (ACA 22) adding Section 4.5 to Article XIII A of the California Constitution. Its official title is "Limits Voters' Ability to Raise Revenues for Local Government Services." Supporters call it the Local Taxpayer Protection Act.

Some background from the Legislative Analyst's Office (LAO): local governments, including cities, counties, special districts and school districts, can raise taxes only with local voter approval. A tax measure can be placed on the ballot by a local governing board, such as a city council, or proposed by voters. Taxes used for a specific purpose are called special taxes. Under current law they need two thirds approval, but the LAO notes that recent court decisions have allowed special taxes proposed by voters to pass with a majority. Prop 43 would apply the two thirds requirement to those voter proposed special taxes as well.

Type of local tax measure	Vote needed today	Vote needed under Prop 43 (from January 1, 2027)
Special tax placed on the ballot by a city council, county board, school board or district board	Two thirds	Two thirds (no change)
Special tax proposed by voters through petition signatures	Simple majority (over 50%)	Two thirds
Taxes approved before Prop 43 applies	Already in effect	Not reopened; the measure applies to measures approved after January 1, 2027

The measure text has one more sentence: it says no local government, including voters using the initiative power, may impose ad valorem taxes on real property except as provided in a cross referenced section of Article XIII D. The LAO analysis does not discuss that sentence or describe it as changing current property tax rules.

What a YES vote and a NO vote mean

A YES vote means certain local government taxes would require two thirds approval by voters. A NO vote means certain local government taxes could continue to be approved by voters with a majority vote.

What it would mean for North County homeowners, buyers and sellers

For coastal North County, Prop 43 matters mostly for future citizen petition tax measures. My method: I applied the vote rule from the measure text and LAO analysis to a local result reported in a Court of Appeal decision.

The clearest local example is the City of San Diego, which includes Carmel Valley (Council District 1). In March 2020, city voters considered Measure C, which qualified through voter signatures. According to the Fourth Appellate District's 2023 decision in Alliance San Diego v. City of San Diego, it raised occupancy taxes on overnight lodging in the city, with revenue designated for convention center upgrades, homeless services and street repairs. It received 65.24 percent of the votes cast. The court held that a special tax proposed by citizens through the initiative process needed only a simple majority, and it returned the case to the trial court to decide whether Measure C truly was a citizens' initiative.

Under Prop 43's rule, a voter proposed special tax like that, put before voters on or after January 1, 2027, would need two thirds, or about 66.67 percent. A result of 65.24 percent would fall short by about 1.4 percentage points. Prop 43 applies going forward, so it would not reach back to Measure C.

In Del Mar, Solana Beach, Encinitas, Cardiff by the Sea, Rancho Santa Fe and the rest of the county, the same rule applies to whatever city, county, school district or special district serves your address. If a school board or city council places a special tax on the ballot, nothing changes. If residents gather signatures to propose a special tax, such as a regional transportation sales tax, it would need two thirds instead of a majority.

Where Prop 43 does and doesn't apply

Prop 43 applies only to new, increased or extended local special taxes that voters propose through the initiative process, from January 1, 2027 forward. It does not change special taxes placed on the ballot by local boards, which already need two thirds, and it does not mention state taxes. The measure text does not change the rules for fees or special assessments, though it cross references a section of Article XIII D, which limits local taxes and charges on real property. The LAO analysis does not discuss fees, assessments or transfer taxes. Its two thirds rule covers "special tax," so a local tax not earmarked for a specific purpose falls outside it. Nothing in the text reaches back to taxes approved before 2027.

What would and would not change on your property tax bill

Prop 43 would not change the amounts on your current property tax bill. A County of San Diego guide for property owners explains that Proposition 13 limits the general ad valorem property tax to 1 percent, and that a typical secured bill also carries rates for voter approved debt of school and special districts, plus special assessments and special taxes such as Mello Roos collected on the bill. Nothing in the measure text or LAO analysis lowers the 1 percent rate or removes existing bond rates, assessments or special taxes.

Fiscal effects

The LAO says Prop 43 makes it harder for local governments to pass certain taxes, so local tax revenues could be lower in the future than they otherwise would be. The LAO adds that the actual revenue impact is unknown and would depend on future decisions by local governments and voters.

What supporters say

Supporters, including the California Taxpayers Association and the Howard Jarvis Taxpayers Association, argue that court decisions created loopholes in Proposition 13 and that Prop 43 restores the two thirds vote for local special taxes. They say local governments have imposed more than 2,000 new or higher taxes in the past decade, and that the measure protects homeowners, renters and small businesses from new real estate taxes, including transfer taxes, as well as new sales, parcel and utility taxes.

What opponents say

Opponents, including California Professional Firefighters and the California School Employees Association, argue that Prop 43 does not cut taxes and instead weakens majority rule, letting about a third of voters block what nearly two thirds want. They say it makes it harder for communities to fund fire and 911 response, road repair, schools, local health care and affordable housing. They also argue that it benefits large corporate donors rather than taxpayers.

What this means if you own, buy or sell a home

If you own a home in coastal North County, Prop 43 would not change what you pay now; it would change the vote needed for future voter proposed special taxes in your city, school district or other local agencies. If you are buying, review the property tax bill on any home you consider, including voter approved debt rates, assessments and special taxes on top of the 1 percent base. If you are selling, Prop 43 would not change any tax due on your sale under current law. It would affect a future real estate tax only if that tax is a special tax proposed by voters.

If voters approve Prop 43 on November 3, 2026, its rule would apply beginning January 1, 2027. Results will be certified after Election Day, and I will update this post then.

Frequently asked questions

What is Prop 43 on the California ballot in 2026?

Prop 43 is a legislative constitutional amendment on the November 3, 2026 ballot. It would require a two thirds vote to pass new, increased or extended local special taxes that voters propose through the initiative process. Today those voter proposed special taxes can pass with a simple majority.

What does a yes vote on Prop 43 mean?

A YES vote means certain local government taxes would require two thirds approval by voters. Those are local special taxes proposed by voters through petition. The rule would apply beginning January 1, 2027.

What does a no vote on Prop 43 mean?

A NO vote means certain local government taxes could continue to be approved by voters with a majority vote. Special taxes placed on the ballot by a city council or other local board would still need two thirds, as they do now.

Does Prop 43 lower my property taxes?

No. Neither the measure text nor the LAO analysis lowers the 1 percent base property tax or removes existing voter approved bond rates, assessments or special taxes on your bill. Prop 43 changes the vote needed for certain future local taxes, not the taxes you already pay.

Is Prop 43 retroactive?

No. The measure applies beginning January 1, 2027, and the official summary says it applies to voter proposed measures approved after that date. Taxes approved before then would not be reopened, though a future extension or increase proposed by voters would need two thirds.

Does Prop 43 affect school parcel taxes and city sales tax measures?

It depends on who puts the measure on the ballot and whether it is a special tax. A special tax placed on the ballot by a school board or city council already needs two thirds, so Prop 43 would not change it. A special tax proposed by voters through signatures would need two thirds instead of a majority.

Is Prop 43 the same as the Taxpayer Protection Act?

Supporters call Prop 43 the Local Taxpayer Protection Act, but on the ballot it is Assembly Constitutional Amendment 22, placed there by the Legislature. Its official title is "Limits Voters' Ability to Raise Revenues for Local Government Services." Read the official voter guide for the full text.

How much would Prop 43 cost or save?

The LAO does not give a dollar figure. It says local tax revenues could be lower in the future than they otherwise would be, and that the actual impact is unknown and depends on future decisions by local governments and voters.

This is one of five explainers on the November 2026 propositions that affect California homeowners: What Is Prop 1, the 2026 Housing Bond, and What Would It Mean for North County?, What Is Prop 37, and Could It Help You Buy a New Home in North County?, What Does Prop 42 Do, and Would It Change Taxes on Your Home? and What Would Prop 45 Change About New Housing Near You in North County?

Questions about how a ballot measure could affect buying or selling your home? Call or text Zach Arrington at (619) 374-5339 or email zach@zarealtygroup.com.

This article is general information and does not recommend how to vote. It is not legal, tax or financial advice. Read the official voter guide and the full measure text before you vote.

Zach Arrington, DRE 02135675, Real Broker, LLC