California Voters Decide on Tax Audit Measure Proposition 41

California voters are deciding on Proposition 41, a ballot measure that would mandate the State Auditor review programs funded by new special taxes before they qualify for the ballot. The measure would require audits every four years for programs created or increased after January 1, 2026, and restrict the state's ability to exclude special-tax revenue from spending limits.

Building a Better California, a political action committee funded by billionaires including Sergey Brin, Larry Page, John Doerr, and Peter Thiel, has spent $58.4 million supporting the measure. Supporters, including the California Taxpayers Association and the CalAsian Chamber of Commerce, argue the measure increases taxpayer transparency and accountability.

Opponents, led by SEIU United Healthcare Workers West, have spent $34.4 million to defeat the measure. They argue Proposition 41 is designed to undermine a separate proposal, Proposition 40, which would implement a one-time wealth tax on billionaires. The California Legislative Analyst's Office determined that because Proposition 41 contains a provision to invalidate conflicting measures, its passage could prevent Proposition 40 from taking effect even if the wealth tax receives majority support.