Two-Thirds Vote Requirement for Special Taxes and Charter City Real Estate Transfer Tax Prohibition Initiative
Type: Citizen-initiated constitutional amendment
Subject: Supermajority;Local government
Election: June 2, 2026 statewide primary
Overview
Require a two-thirds vote by the electorate to enact special local taxes enacted by successful citizen initiative campaigns and prohibit charter city from levying real estate transfer taxes
Measure Design
See also: Text of measure Click on the following sections for summaries of the different provisions of the ballot measure. Expand All Supermajority requirement for citizen-initiated special taxes The initiative would amend the California Constitution to increase the vote requirement to pass citizen-initiated local special taxes from a simple majority (50%+1) to two-thirds (66.67%) vote . A special tax is defined in section 1 of Article XIII C of the state constitution as “any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.” [1] The amendment would invalidate any property-related special taxes previously adopted with an approval rate below two-thirds on December 31, two years following the enactment of the initiative if approved. The taxes could be reauthorized if approved by two-thirds of voters. [1] [7] Currently, special taxes proposed by local governing bodies (e.g., county board of supervisors) require a two-thirds vote by lawmakers and the electorate to be approved. General taxes defined in the state constitution as “any tax imposed for general governmental purposes” proposed by local governments require a two-thirds vote by lawmakers and a simple majority vote of electors for approval. Charter city-only real estate transfer tax prohibition The initiative would prohibit charter cities from imposing their own real estate transfer taxes, regardless of whether they are for general or specific purposes, above the existing statutory rate of $0.275 per $500 of value. It would also invalidate any existing charter city-only transfer taxes on December 31, two years following the enactment of the initiative, if approved. [1] [8] The initiative would continue to allow counties and cities to impose a documentary transfer tax, where they split the revenues evenly between the county and the city. State law currently limits the documentary transfer tax to $0.55 per $500 of value. [8]
Ballot Title
The ballot title is as follows: [9] “ Limits ability of voters to raise revenues for local government services. Initiative constitutional amendment. [10] ”
Petition Summary
The summary provided for inclusion on signature petition sheets is as follows: [9] “ Limits voters’ ability to pass voter-proposed local special taxes by raising the vote approval threshold requirement for such ballot measures from a simple majority (over 50%) to two-thirds. In charter cities, prohibits voters from approving real estate transfer taxes other than the existing 0.11% transfer tax authorized by Revenue and Taxation Code section 11911. Overturns all existing voter-approved property-related taxes, including real estate sales and transfer taxes, that do not comply with these requirements two years after the measure is enacted. [10] ”
Support
Protect Prop. 13 and Californians to Restore Local Taxpayers’ Right to Vote on Taxes are leading the campaign in support of the initiative. [11] [12]
Supporters
Organizations Apartment Association of Greater Los Angeles California Business Roundtable Howard Jarvis Taxpayers Association Reform California
Arguments
Reform California Chairman and State Assemblymember Carl DeMaio (R-75): “Sacramento politicians have been scheming for years to weaken Prop 13 and raise property taxes on homeowners. By turning in 1.35 million signatures, taxpayers just sent a loud and clear message: Hands off our homes.” Susan Shelley, vice president of communications for the Howard Jarvis Taxpayers Association: “This is closing court-created loopholes that have made it easier to raise your taxes—all kinds of taxes: sales taxes, parcel taxes, various taxes—that are costing Californians billions of dollars a year, and they’re unconstitutional.” Jon Coupal, president of the Howard Jarvis Taxpayers Association: “[S]ince Prop. 13’s passage, many cities began imposing real estate transfer taxes in excess of $45 per $1,000 of value. Even worse, because of the infamous Upland decision, local governments operating under the guise of ‘citizen groups’ can propose ‘special taxes’ by initiative, evading the requirement of a two-thirds vote of the electorate to pass. And while the courts originally said transfer tax revenue must go into a municipality’s general fund, special taxes under Upland can be exclusively directed to whatever the local government, or special interest group, wants. The worst abuse of Upland occurred in Los Angeles where, because of Measure ULA, high-value properties are now subject to very high transfer taxes.”
Opposition
Ballotpedia did not locate a campaign in opposition to the ballot measure.
Campaign Finance
The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed , which covered through March 31, 2026 . The deadline for the next scheduled reports is July 31, 2026. See also: Campaign finance requirements for California ballot measures Protect Prop. 13 and Californians to Restore Local Taxpayers’ Right to Vote on Taxes registered in support of the initiative. Together, the committees reported over $14.4 million in contributions. [5] Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures Support $5,528,420.26 $8,879,399.55 $14,407,819.81 $5,838,826.71 $14,718,226.26 Oppose $0.00 $0.00 $0.00 $0.00 $0.00 Total $5,528,420.26 $8,879,399.55 $14,407,819.81 $5,838,826.71 $14,718,226.26
Donors
The following table shows the top donors to the committees registered in support of the ballot measure. [5] Donor Cash Contributions In-Kind Contributions Total Contributions California Business Roundtable Issues PAC $10,256,700.00 $0.00 $10,256,700.00 Douglas Emmett Properties, LP $1,000,000.00 $0.00 $1,000,000.00 Kilroy Realty, LP $1,000,000.00 $0.00 $1,000,000.00 Jerry A. Greenberg $250,000.00 $0.00 $250,000.00 Issues PAC of Apartment Association of Greater Los Angeles $10,000.00 $0.00 $10,000.00 Dan Palmer $5,000.00 $0.00 $5,000.00
Path To The Ballot
See also: Laws governing the initiative process in California An initiated constitutional amendment is a citizen-initiated ballot measure that amends a state’s constitution . Eighteen (18) states allow citizens to initiate constitutional amendments. In California, the number of signatures required for an initiated constitutional amendment is equal to 8% of the votes cast in the last gubernatorial election. A simple majority vote is required for voter approval. The requirements to get initiated constitutional amendments certified for the 2026 ballot: Signatures : 874,641 valid signatures are required. Deadline : The deadline for signature verification is June 25, 2026. However, the secretary of state suggested deadlines for turning in signatures of January 12, 2026, for initiatives needing a full check of signatures and April 17, 2026, for initiatives needing a random sample of signatures verified.