- California Retroactive Tax Prohibition Proposition51¢51%
Governor Gavin Newsom’s October 9 endorsement of Proposition 42 has strengthened trader support by framing the measure as essential protection for retirement accounts and personal savings against the competing billionaire wealth tax on the same November 2026 ballot. The initiative would amend the state constitution to bar new taxes on personal property ownership enacted after January 1, 2026, and prohibit most retroactive taxes tied to prior residency or conduct, with a narrow emergency exception. Backed by major donors including Sergey Brin, it is structured so that whichever of the conflicting measures receives more votes prevails. Recent polling showing limited majority support for the wealth tax has further aligned trader consensus with passage of the prohibition measure.
Rules
Proposition 42 is a California ballot measure currently scheduled for voting on November 3, 2026. It would prevent retroactive taxes and new taxes on personal property, which would offset the proposed wealth tax in Proposition 40. This market will resolve to “Yes” if the specified ballot measure is approved by a majority of voters at the California statewide general election currently scheduled for November 3, 2026. Otherwise, this market will resolve to “No.” If voting on the specified ballot measure does not occur, or the results thereof are not known definitively, by March 31, 2027, this market will resolve to “No”. This market will resolve based on a consensus of credible reporting. If there is ambiguity, this market will resolve solely based on official information from the State of California, including the California Secretary of State (https://www.sos.ca.gov/).