California Voters May Limit Local Property Taxes

The Local Taxpayer Protection Act seeks to restrict real estate transfer taxes and require two-thirds majority for new citizen-approved taxes

Published on Feb. 23, 2026

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The Howard Jarvis Taxpayers Association is proposing a new ballot initiative called the Local Taxpayer Protection Act to Save Proposition 13, which would restrict real estate transfer taxes and require a two-thirds majority for even citizen-approved local taxes. This comes in response to a wave of new local property taxes in California, including the controversial 'mansion tax' in Los Angeles that has had unintended consequences of slowing real estate sales and reducing affordable housing development.

Why it matters

California voters have long been protective of Proposition 13, which limits property tax increases. However, local governments have increasingly sought new ways to raise taxes, leading to this new ballot initiative that could significantly restrict their ability to do so. The outcome could have major implications for real estate, housing affordability, and local government budgets across the state.

The details

The Local Taxpayer Protection Act would restrict real estate transfer taxes and require a two-thirds majority for any new local taxes, even those approved by voters. This is in response to measures like Los Angeles' Measure ULA 'mansion tax,' which has had unintended consequences of slowing real estate sales and reducing affordable housing development, despite its intent to fund affordable housing investments. The Howard Jarvis Taxpayers Association, which zealously guards Proposition 13, is behind the new ballot initiative and has reportedly collected enough signatures to qualify it for the ballot, though the final determination is still weeks away.

  • In 2022, voters in Los Angeles passed Measure ULA, a 'mansion tax' on high-end real estate sales.
  • The Measure ULA tax was triggered on sales of $5.3 million or more, starting on April 1, 2023.
  • Last year, Los Angeles Mayor Karen Bass promised to repeal Measure ULA but failed to get her proposal in on time to the state legislature.

The players

Howard Jarvis Taxpayers Association (HJTA)

A taxpayer advocacy group that zealously guards California's Proposition 13, which restricts property tax increases. The HJTA is behind the new Local Taxpayer Protection Act ballot initiative.

Karen Bass

The mayor of Los Angeles who promised to repeal the controversial Measure ULA 'mansion tax' but failed to do so.

Measure ULA

A tax on high-end real estate sales in Los Angeles, intended to fund affordable housing investments, but which has had unintended consequences of slowing sales and reducing new affordable housing development.

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What’s next

The Howard Jarvis Taxpayers Association has reportedly collected enough signatures to qualify the Local Taxpayer Protection Act for the ballot, though the final determination is still weeks away. If the measure makes it to the ballot, California voters will have the chance to significantly restrict the ability of local governments to raise taxes, which could have major implications across the state.

The takeaway

This ballot initiative highlights the ongoing tension in California between taxpayer protections like Proposition 13 and the desire of local governments to raise revenue. The outcome could reshape the landscape of property taxes and housing affordability in the state for years to come.