AUG. 25, 2026 | SACRAMENTO, CA—CalCPA, the statewide association representing California's CPA profession, announced its positions on three measures on the Nov. 3 statewide ballot. CalCPA opposes Proposition 40, the “2026 Billionaire Tax Act,” and supports Proposition 41, the “Improving Transparency, Effectiveness, and Efficiency in California Government Act of 2026,” and supports Proposition 42, the “Retirement & Personal Savings Protection Act of 2026.” CalCPA is also a signer of the official ballot argument in support of Proposition 41.
CalCPA’s positions are grounded in the profession’s expertise in tax, auditing and financial accountability, along with its longstanding commitment to the public interest. Because CPAs help taxpayers navigate California’s tax laws and assess whether programs and controls are effective, CalCPA evaluated each measure for fair, consistent and predictable implementation, as well as its potential effects on accountability and public confidence.
“Our positions reflect the accounting profession’s longstanding work to advance sound public policy,” said Denise LeDuc Froemming, CPA, President and CEO of CalCPA. “Every day, CPAs help California taxpayers, businesses and nonprofit organizations navigate complex tax laws and provide independent assurance that builds public trust. We evaluated each measure through that practical lens because Californians deserve tax policies that are clear, workable and accountable.”
Oppose Proposition 40—The 2026 Billionaire Tax Act
Proposition 40 would impose a one-time 5 percent tax on individuals and trusts with more than $1 billion in covered assets, payable over five years. CalCPA opposes the measure because it creates a fundamentally new and difficult-to-administer tax framework that raises significant administrative feasibility concerns. The proposal relies on valuing complex and often illiquid assets, increasing the likelihood of valuation disputes, litigation and uncertainty for taxpayers, tax practitioners and tax agencies. In addition, its retroactive tax provisions undermine taxpayer certainty by changing the rules after the fact. The Legislative Analyst's Office analysis of Proposition 40 notes many of these practical implementation concerns and long-term risks to income tax revenues from taxpayer behaviors in response to the measure.
Support Proposition 41—Improving Transparency, Effectiveness and Efficiency in California Government Act
Proposition 41 requires the independent California State Auditor to conduct pre-election and ongoing performance and financial audits of programs funded by new statewide special taxes, with audit results made available to voters. The measure also requires new state taxes to remain subject to California's existing voter-approved state spending limit.
CalCPA supports Proposition 41 because independent audits provide voters with objective, credible information to inform decisions about public spending. Transparency, sound data and independent review are essential to effective governance and reflect principles central to the CPA profession.
CPAs provide businesses, nonprofits, governments and the public with reliable information that supports sound decision-making. Proposition 41 applies these principles, giving Californians useful information to evaluate public programs, inform resource allocation and promote responsible fiscal management. CalCPA is proud to sign the official ballot argument in support of Proposition 41.
Support Proposition 42—Retirement & Personal Savings Protection Act
Prop 42 would amend the California Constitution to prohibit new state taxes on personal property, including retirement accounts, financial assets, business interests and intellectual property, while also limiting certain retroactive state taxes.
CalCPA supports the measure because stable, prospective tax policy promotes taxpayer certainty and reinforces confidence that the rules will not change after the fact. Clear and predictable tax laws make California's tax system easier to administer, easier for taxpayers to comply with and more consistent with sound principles of tax administration.
About CalCPA
Established in 1903, CalCPA is the largest state CPA society in the country, representing and supporting certified public accountants and related professionals in California.
Media Contact
Meagan Luevano | (916) 896-7406
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