Proposition 43 (ACA 22) Could Reshape Local Tax Initiatives: What California Cities Should Know Before 2027

California voters will consider Proposition 43 (ACA 22) at the November 3, 2026 General Election. If approved, the measure will require local special taxes proposed through the initiative process to receive two thirds voter approval beginning January 1, 2027.

ACA 22 is not currently law and will take effect only if approved by California voters.

Why This Matters

Current law requires a two thirds vote for local special taxes proposed by a city council. Under current California court decisions, local initiative special taxes generally may be approved by a majority vote.

ACA 22 would eliminate that distinction by applying the same two thirds voter approval requirement regardless of whether a local special tax is proposed by a city council or through the initiative process.

The measure does not expressly change the voter approval requirements for general taxes.

What This Means for Cities

ACA 22 applies prospectively and does not expressly invalidate local taxes approved before January 1, 2027.

If approved, the measure will have its greatest impact on future local initiative special taxes and on future proposals to extend, renew, or increase existing voter approved special taxes.

Cities and citizens should consider the potential effect of ACA 22 when planning future revenue measures and election timelines.

Preparing for 2027

If Proposition 43 is approved, cities should:

• monitor pending local initiative tax measures;
• identify voter approved special taxes that may require future renewal, extension, or increase; and
• evaluate whether planned revenue measures after January 1, 2027 may be affected by the new voter approval requirement.

Looking Ahead

ACA 22 would establish a single voter approval standard for local special taxes regardless of who places the measure on the ballot.

Cities with pending initiative measures or voter approved special taxes approaching expiration should begin evaluating the potential impact now.

ACA 22 was a compromise measure between the Legislature and Howard Jarvis Taxpayers Association to pull both ACA 13 and the Local Taxpayer Protection Act off the November ballot.

For additional information, including the full text and legislative history of ACA 22, visit the California Legislature’s official bill page here.

Our Election Law and Public Finance Practice Group will continue monitoring Proposition 43 and is available to assist cities with pending initiatives, future tax measures, and election administration.