Council decides whether to formally oppose state Proposition 43

In plain English

The City Council is asked to decide whether to take a formal position against California Proposition 43, a statewide constitutional amendment on the November 3, 2026 ballot. Proposition 43 would require any local special tax — a tax dedicated to a specific purpose, such as fire service or parks — to get a two-thirds vote to pass, even when residents themselves put the measure on the ballot through a citizen initiative; today those citizen-initiated special taxes only need a simple majority. A yes vote on this agenda item would adopt a resolution opposing Proposition 43 and direct staff to email it to the League of California Cities. The Council's other listed option is to take no formal position.

The measure would change the vote threshold for future citizen-proposed special taxes in Capitola and statewide starting January 1, 2027, so it affects residents who might later try to raise dedicated local funding for things like emergency services, roads, parks or housing. The resolution is a statement of the City's position only; it does not change any tax.

Key facts

Proposition 43 (Assembly Constitutional Amendment 22) is on the November 3, 2026 statewide ballot; its changes would begin January 1, 2027.
It would raise the approval threshold for citizen-initiated local special taxes from a simple majority to two-thirds (66.67%), and bar local governments and their voters from imposing a property tax except as already allowed in the state constitution.
The staff report states the measure works only going forward: it would not repeal existing real property transfer taxes, invalidate existing voter-approved special taxes, or set a deadline to end current taxes.
As of September 16, 2026, the League of California Cities is formally recommending cities oppose Proposition 43; the draft resolution would be emailed to BallotMeasures@calcities.org.
Council Members Orbach and Westman requested the item at the August 27, 2026 meeting; the staff report lists direct fiscal impact on Capitola as unknown.

Reasons to support

The draft resolution states that under Proposition 43, opponents of a voter-proposed local funding measure would need only one-third (33.4%) of the vote to block it, and that California communities would not have been able to raise nearly $3 billion per year that funds firefighters and 911 response, childcare, homelessness solutions, street repairs, parks and libraries.
The attached opinion piece by Sonoma City Councilmember Sandra Lowe says Sonoma County's Measure H half-cent sales tax for emergency services passed in 2024 with almost 62% of the vote and would have failed under Proposition 43, along with Alameda County's 2025 healthcare measure and Santa Clara's June open space measure.
Staff write that the measure could push communities toward general taxes, which still need only majority approval, but general taxes cannot be legally restricted to the specific program voters intended and could add pressure on the city's general fund.

Reasons to oppose or change it

The attached article notes the opposing view that Proposition 43 simply solidifies a constitutional amendment passed decades ago that the courts muddied — that is, supporters see it as restoring one consistent two-thirds rule for all special taxes rather than a lower bar depending on who files the measure.
Staff acknowledge Proposition 43 would not reduce or eliminate any existing city revenue, that any direct fiscal impact on Capitola is unknown, and that statewide foregone revenue cannot be reliably estimated — so the Council would be opposing a measure whose cost to Capitola is speculative.
The staff report expressly offers the option of taking no formal position, leaving the choice on Proposition 43 to voters at the November 3, 2026 election.

Official wording

Consider a Resolution of Opposition to California State Proposition 43 Recommended Action: Receive a report and either 1) Adopt a resolution opposing Proposition 43; or 2) Take no formal position on Proposition 43

Official agenda

Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, pages 124-128). It can contain mistakes. The official documents govern.