California’s ‘billionaire tax’ is still undecided. Here’s where Proposition 40 stands

Days after the midterm elections, Proposition 40 has yet to be decided. The ballot measure, which would impose a one-time 5% tax on California billionaires to help fund healthcare, is failing by more than 8 percentage points.

Statewide, more than 4 million votes remain to be counted in this race, according to the Associated Press, which calculates the expected vote using returns and other data. That includes more than half a million from Los Angeles County, where the “yes” vote leads by more than 7 percentage points.

The proposition has so far found support in nine counties: Alameda, Humboldt, Los Angeles, Mendocino, Monterey, San Francisco, Santa Cruz, Sonoma and Yolo. In Southern California, Los Angeles is the only county leaning toward “yes.”

Propositions 41 and 42

While Proposition 40 focuses narrowly on taxing billionaires, competing Propositions 41 and 42 would have broader impacts on the state’s ability to enact new taxes. And the measures could undercut Proposition 40 if it passes.

As of Friday, the latest vote tallies showed “yes” on Proposition 41 trailing by more than 7 points, while “yes” on Proposition 42 was ahead by more than 6 points.

Proposition 41 would would require audits for new state special taxes and prohibit new state taxes from being exempted from a voter-approved state spending limit. Proposition 42 would prohibit new taxes on retirement holdings, individually owned assets and other personal savings. If Proposition 40 passes and either of these measures passes with more “yes” votes than Proposition 40, it would prevent the billionaire tax from becoming law.

A late October poll showed voter opposition to Propositions 41 and 42 had grown even as support for the billionaire tax declined.

The money behind the measures

Support for Proposition 40 has totaled to nearly $35 million, mostly from the Service Employees International Union-United Healthcare Workers West, the healthcare workers union that proposed the tax.

Backers of Propositions 41 and 42 also opposed Proposition 40. Combined, they raised more than $300 million. Most of that money came from the billionaires who would be subject to the tax.