California Rejects Prop. 40 Wealth Tax and Trails on Prop. 45 CEQA

SACRAMENTO & CONCORD, Calif. — California voters weighed 14 statewide ballot propositions on Tuesday, November 3, 2026, rejecting Proposition 40’s proposed one-time 5% wealth tax on billionaires and Proposition 45’s California Environmental Quality Act (CEQA) timeline overhaul while approving multi-billion-dollar bonds for affordable housing, down-payment assistance, and immunotherapy research.

Voters Reject Proposition 40 Billionaire Wealth Tax After $316.7 Million Campaign

As reported by San Jose Inside and NBC Bay Area, Proposition 40—sponsored by Service Employees International Union-United Healthcare Workers West (SEIU-UHW) and its president Dave Regan to impose a one-time 5% tax on the stocks, bonds, and business holdings of California’s roughly 200 billionaires—trailed by nearly 800,000 votes, with 56.4% voting "No" to 43.6% "Yes" (56.3% No, or 4,042,855 votes, to 43.7% Yes, or 3,132,645 votes in NBC Bay Area’s count).

While SEIU-UHW, the California Democratic Party, and the California Federation of Labor Unions projected the measure would raise $100 billion over 5 years to offset federal healthcare cuts affecting 2 million residents, the nonpartisan Legislative Analyst’s Office (LAO) estimated it would raise "tens of billions of dollars" while potentially reducing annual state income tax revenue by less than $1 billion if billionaires relocated. Opponents—including Gov. Gavin Newsom, San Jose Mayor Matt Mahan, Planned Parenthood of California, the California Teachers Association, and Google co-founder Sergey Brin, who moved out of state and donated $102 million to Building a Better California—poured $316.7 million into defeating Proposition 40 and backing countermeasures Propositions 41 and 42 (55% to 45% in early tracking).

Proposition 45 CEQA Overhaul Trails Amid Data Center and Environmental Debate

According to The San Francisco Standard, Proposition 45—sponsored by the California Chamber of Commerce (CalChamber) to cap CEQA environmental impact reports at 365 business days, public comment periods at 45 days, lawsuit filings at 30 days, and judicial resolution including appeals at 270 days for housing, water, freeway, and broadband projects (referencing 2010s Vallco Mall delays in Cupertino)—was trailing 54.2% "No" (3,050,211 votes) to 45.8% "Yes" (2,576,563 votes), and 54.09% "No" (3,710,488 votes) to 45.91% "Yes" (3,149,067 votes; 54.4% to 45.6% in early SOS returns) with 53% of the expected vote in.

While YIMBY groups split over the measure, 19 state legislators and No on Prop. 45 spokesperson Woody Little warned that the initiative could fast-track data centers and weaken environmental protections, even as proponents cited an Office of Legislative Counsel opinion and Federal Communications Commission definitions excluding data centers from broadband internet service.

Results Across All 14 California Statewide Ballot Propositions

Across all 14 propositions tracked by NBC Bay Area (53% to 55% expected vote reporting) and San Jose Inside:

• Proposition 1 ($11.25 Billion Affordable Housing & Veterans Bonds): Projected winner with 59.15% Yes (4,140,322 votes; 59.4% in early SOS returns) to 40.85% No (2,859,786 votes; 40.6%).
• Proposition 2 (Rainy Day Fund Cap Increased from 10% to 20%): Projected winner with 59.55% Yes (4,165,548 votes; 60%) to 40.45% No (2,829,838 votes; 40%).
• Proposition 3 (Renewal of 2012 Higher Income Tax Rates for Education): Projected winner with 58.54% Yes (4,127,476 votes; 58.9%) to 41.46% No (2,923,600 votes; 41.1%).
• Proposition 4 (Public Funding of Political Campaigns): Trailing with 52.19% No (3,608,220 votes; 52%) to 47.81% Yes (3,305,466 votes; 48%).
• Proposition 5 (Eliminate Recall Successor Elections): Leading narrowly with 50.13% Yes (3,436,344 votes; 50.5%) to 49.87% No (3,417,888 votes; 49.5%).
• Proposition 37 ($25 Billion Down Payment Assistance Bonds): Projected winner with 60.75% Yes (4,266,679 votes; 60.9%) to 39.25% No (2,756,291 votes; 39.1%).
• Proposition 38 ($8.4 Billion Immunotherapy Research Bonds): Leading with 56.18% Yes (3,926,639 votes; 56.9%) to 43.82% No (3,063,085 votes; 43.1%).
• Proposition 39 (Require Government Voter ID & Citizenship Proof): Trailing with 58.8% No (4,207,726 votes; 59.7%) to 41.2% Yes (2,945,903 votes; 40.3%).
• Proposition 40 (One-Time 5% Wealth Tax Over $1 Billion): Trailing with 56.3% No (4,042,855 votes; 56.4%) to 43.7% Yes (3,132,645 votes; 43.6%).
• Proposition 41 (1979 Spending Limit & State Tax Audits): Trailing with 52.2% No (3,675,479 votes; 52.5%) to 47.8% Yes (3,361,090 votes; 47.5%).
• Proposition 42 (Ban on New Personal Property & Wealth Taxes): At 54.6% Yes (3,881,753 votes; 54.5%) to 45.4% No (3,222,998 votes; 45.5%).
• Proposition 43 (Two-Thirds Vote for Local Special Taxes): Trailing with 54.61% No (3,763,031 votes; 54.7%) to 45.39% Yes (3,127,418 votes; 45.3%).
• Proposition 44 (Community Health Clinics 90% Spending Mandate, opposed by California Primary Care Association): Defeated with 82.22% No (5,638,189 votes; 82.5%) to 17.78% Yes (1,219,229 votes; 17.5%).
• Proposition 45 (CEQA Environmental Review Timelines): Trailing with 54.09% No (3,710,488 votes; 54.4%) to 45.91% Yes (3,149,067 votes; 45.6%).