Voter ID and Billionaire Tax Measures Trailing in Early Returns

California voters are rejecting two major initiatives as early returns show Proposition 39 and Proposition 40 trailing. The Secretary of State reported data from 15,379 of 23,860 precincts on Tuesday evening. Proposition 39, which proposes new voter identification rules, stands at 59.7% No to 40.3% Yes. Proposition 40, a one-time wealth tax on billionaires, trails 56.5% No to 43.5% Yes.

Proposition 39 would require identification when voting in person. For mail ballots, voters would need to provide the last four digits of a government-issued ID number on the envelope. Election officials would verify this number against registration records before counting the ballot. The state would issue free voter identification cards upon request. Additional legislation would be needed to determine which forms of ID qualify for the process.

Reform California supports the measure. Assemblyman Carl DeMaio, R-San Diego, chairs the organization and helped write the initiative. He stated that the plan is a common-sense and bipartisan way to restore trust in the election system. Opponents argue the measure could make voting harder and riskier. Jenny Farrell, executive director of the League of Women Voters of California, said the proposal was designed to make voting more expensive and difficult for Californians.

The nonpartisan Legislative Analyst’s Office estimates the cost of implementing Proposition 39 at tens of millions to low hundreds of millions of dollars annually. This depends on how state and local governments choose to implement the requirements. The measure would also require officials to use government data to verify registered voters’ citizenship.

Proposition 40 targets billionaires who were California residents as of Jan. 1, 2026. The tax would be due in 2027, with an option to spread payments over five years. Real estate and certain pension and retirement assets would be excluded from the tax base. The measure reserves 90% of the revenue for health care, with the rest supporting education and food assistance. The revenue would be exempt from existing constitutional spending limits.

The Yes on 40 campaign estimates about 200 billionaires would pay the tax. They project roughly $100 billion in revenue to help offset federal funding cuts. Andres Gonzalez, a health care worker from Maywood, said working families pay the price when federal leaders choose tax breaks for billionaires. Opponents warn the tax could drive wealthy residents and investment out of the state. Ann-Louise Kuhns, president and CEO of the California Children’s Hospital Association, said the one-time tax does not provide stability for the health care system.

Propositions 41 and 42 are tied to Proposition 40. Proposition 41 trails 52.4% to 47.6%. It would require audits of programs supported by special-tax initiatives before they reach the ballot. Proposition 42 leads 54.6% to 45.4%. It would prohibit new state taxes on retirement holdings and other personal savings. Both measures include provisions that could nullify Proposition 40 if they pass with more yes votes than Proposition 40.

Other propositions on the ballot show varied results. Proposition 1, authorizing $11.25 billion in bonds for affordable housing, leads 59.3% to 40.7%. Proposition 2, increasing the state’s rainy-day fund cap, leads 60.0% to 40.0%. Proposition 3, making permanent higher income-tax rates for the wealthiest 2% of taxpayers, leads 58.8% to 41.2%. The Legislative Analyst’s Office estimates this measure would preserve $5 billion to $15 billion in annual revenue.