- California Tax Spend Audit Proposition40¢40%
California voters face Proposition 41 on the November 3, 2026 ballot, which would mandate pre-election audits by the state auditor for citizen-initiated special taxes once 25 percent of signatures are collected and require recurring four-year performance audits for new or increased special taxes enacted after January 1, 2026, while barring new state taxes from exemption under the existing voter-approved spending limit. The measure qualified in June after clearing signature thresholds and directly conflicts with the competing wealth-tax proposal, drawing backing from fiscal accountability advocates and figures seeking to enforce spending caps. Recent October state auditor findings highlighting nearly $885,000 in identified waste across agencies have reinforced arguments for expanded oversight. September polling showed 51 percent support, and trader consensus reflected in current pricing incorporates these transparency-focused developments alongside broader resistance to new tax structures ahead of the election.
Rules
Proposition 41 is a California ballot measure currently scheduled for voting on November 3, 2026. It would audit new tax spending and ban new taxes from being exempt from the state spending cap, 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/).