Ballot Guide · October 26, 2026 · The Group CRE
Los Angeles voters will decide 14 statewide propositions, 2 county measures and 7 City of Los Angeles measures on Tuesday, November 3, 2026, plus one more City measure for voters in the LAUSD area. If you own apartments or commercial property in the City of LA, start here: nothing on this ballot changes rent control, the RSO, AB 1482 or eviction rules in the City.
A handful of measures do touch taxes, development and the cost of selling. This guide explains each one, the tradeoff voters are weighing and what it could mean for your property. It does not tell you how to vote.
In this guide
| Effect on LA rental and commercial owners | Measures |
|---|---|
| Most direct | State Prop 43, State Prop 45, State Prop 3, City Prop TE, City Charter Amendment PL |
| Smaller or indirect | State Props 1, 37, 40, 41 and 42; City Measure FD; City Charter Amendments LA, PRT, PRK and EE; County Measures A and E |
| Little or none | State Props 2, 4, 5, 38, 39 and 44; City Charter Amendment SC |
Today, a local tax earmarked for a specific purpose needs a two-thirds vote when a city puts it on the ballot. Since a 2017 California Supreme Court decision and later appeals court rulings, the same kind of tax can pass with a simple majority if residents put it on the ballot by petition. Measure ULA passed that way in 2022, with about 58% of the vote.
Prop 43 would require two-thirds in both cases for taxes approved after January 1, 2027. The Legislature placed it on the ballot as part of a deal that took a broader Howard Jarvis Taxpayers Association initiative off the ballot.
The tradeoff. Supporters, led by taxpayer groups, say it closes a loophole and restores the protection voters approved in Prop 13. Opponents, including firefighter, nurse and teacher unions and some affordable housing groups, say it lets about one-third of voters block local funding most voters want.
What this could mean for your property
Prop 43 does not repeal, reduce or cap Measure ULA. ULA stays exactly as it is. What changes is the future: a new citizen-sponsored transfer tax, parcel tax or other earmarked tax on property anywhere in California would need two-thirds approval to pass. Taxes placed on the ballot by a city council, and general taxes, are not affected.
California’s environmental review law, known as CEQA, can add years and lawsuits to a project. Prop 45 creates an optional faster track for housing, water, clean energy, health facilities, schools, fire and police stations, wildfire prevention, broadband and transportation projects. It sets deadlines for agencies and courts, locks in the rules in place when an application is filed, and limits courts to stopping only the part of a project found out of compliance.
The tradeoff. Supporters, led by the California Chamber of Commerce with backing from homebuilders and utilities, say permitting delays drive up housing and infrastructure costs. Opponents, including environmental groups and building trades unions, say it limits public input and environmental protections. Some housing advocates took no position because it also eases suburban and fire-zone development.
What this could mean for your property
If you develop, this matters most for projects that still need a full environmental review: larger projects, discretionary approvals and plan amendments. A 2025 state law, AB 130, already exempts many infill housing projects from CEQA, so the gain for typical infill apartments is smaller. For owners of existing buildings, the effect is indirect: more new supply over time in some neighborhoods.
Since 2012, California has charged higher income tax rates of 10.3% to 12.3% on high earners. This year that means income above about $371,000 (single) or $743,000 (joint). Those rates are set to expire in 2031. Prop 3 would make them permanent.
The tradeoff. Supporters, including the California Teachers Association, say the $5 billion to $15 billion a year protects school and health care funding. Opponents, including the California Taxpayers Association, say Californians already pay some of the nation’s highest income taxes and the state should fix spending first.
What this could mean for your property
California taxes capital gains as regular income, so the year you sell a building, your gain can land in these top brackets. If Prop 3 passes, nothing changes from today. If it fails, the state rate on income above those thresholds falls to 9.3% starting in 2031, a cut of 1 to 3 percentage points. On $1 million of gain in the top bracket, that is a $30,000 difference. Sales before 2031 are unaffected either way, and a 1031 exchange still defers the gain. Talk with your tax advisor if you are planning a sale around that date.
Prop 37 lets the state housing finance agency sell up to $25 billion in bonds to make fixed-rate second loans covering up to 17% of the price of a newly built home. Buyers must earn no more than twice the area median income and put at least 3% down. The home price cap is about $1.5 million. Builders who meet labor standards get a different process for construction defect claims.
The tradeoff. Supporters, including a nurses union, the carpenters union and State Treasurer Fiona Ma, say it makes homes more affordable at no taxpayer cost. No argument against was filed for the official voter guide.
What this could mean for your property
If you build condos or townhomes for sale, this could widen your buyer pool and change how defect claims are handled. Researchers at UC Berkeley’s Terner Center identify defect liability as a key driver of the decline in condo construction. For rental owners, the effect is indirect: some higher-earning renters could become first-time buyers.
Prop 1 lets the state borrow $10 billion for affordable housing, most of it ($7.2 billion) for building, buying and renovating affordable rentals, plus $1.25 billion for veterans home loans. Repayment costs the state budget about $500 million to $600 million a year for roughly 25 years.
The tradeoff. Supporters, including veterans and housing groups, say it builds homes for veterans, seniors and working families without new taxes. No argument against was filed, though the debt service competes with other state spending.
What this could mean for your property
No direct effect on market-rate owners. Over time it could mean more subsidized units in some neighborhoods, and more well-funded nonprofit buyers for older buildings, since the money can be used to buy and preserve existing housing.
Prop 40 is a one-time 5% tax on the net worth of Californians worth $1 billion or more. Props 41 and 42 limit future state taxes, and if either gets more yes votes than Prop 40, a court could block Prop 40 even if it passes.
What this could mean for your property
For almost every owner, nothing directly. Prop 40 reaches only Californians worth $1 billion or more. Prop 42 would keep any future state wealth tax from reaching real estate held through an LLC or partnership.
Measure A bans strikes by county public safety workers and sends stalled contract talks to binding arbitration. Supporters, led by the unions, say it takes politics out of pay decisions. Critics say arbitrators are not accountable to voters, and the county’s acting chief executive warned that awards could strain the county budget.
Measure E makes the county’s new Ethics Commission more independent and restores a set-aside of at least 10% of the county’s unrestricted general fund for community programs. Supporters say it fulfills what voters approved in 2024; critics say it locks in spending.
What this could mean for your property
No direct effect. Neither creates a tax or fee or changes housing rules.
Prop TE would exempt sales of residential properties damaged or destroyed in the January 2025 Palisades Fire from Measure ULA, the City’s transfer tax of 4% on sales above $5.4 million and 5.5% at $10.9 million and up (thresholds in effect since July 1, 2026; they adjust each July 1). The seller must have owned the property on January 7, 2025, and the sale must close by January 6, 2030. Sellers who already paid ULA on a qualifying sale could get a refund.
The tradeoff. Supporters, including the Mayor and the area’s Councilmember, say ULA was never meant to penalize fire survivors. No argument against was filed. The cost is an estimated $35 million to $66 million less for ULA’s affordable housing and homelessness programs through 2030.
What this could mean for your property
If you own fire-affected residential property in the Palisades and sell it for more than $5.4 million, this could save 4% or 5.5% of your sale price; on a $6 million sale, that is $240,000. Supporters say apartment buildings qualify, but the measure does not define “residential property” or say how vacant lots are treated, so confirm eligibility before pricing a sale. Nothing changes for ULA elsewhere in the City. A separate idea to exempt new apartment construction from ULA was shelved and is not on this ballot.
PL replaces the City’s seven regional Area Planning Commissions with one citywide Neighborhood Appeals Commission. It sets deadlines for the City Council to act on planning decisions, and treats a General Plan change as approved, not denied, if the Council misses its 75-day deadline after the Planning Commission and Mayor recommend it. It also lets the Council change the City’s maximum building size limit (13 times the buildable lot area) by ordinance.
The tradeoff. Supporters, including the Charter Reform Commission chair, say clearer rules and deadlines reduce political influence and speed approvals. No argument against was filed. The change does remove the local panels that hear neighborhood appeals today.
What this could mean for your property
If you are entitling a project that needs a discretionary approval, such as a variance, a conditional use permit or a plan change, PL could make timelines more predictable. The size-limit change matters mainly for very dense sites like Downtown, and only if the Council later adopts an ordinance. Projects approved “by right,” without a discretionary hearing, see little change.
FD adds a 0.5% sales tax in the City of LA, raising the rate from 10.25% to 10.75%, for about $345 million a year dedicated to the Fire Department. It has no end date, and the City cannot collect it in a year it cuts the department’s share of the budget. Because it qualified by citizen petition, led by the firefighters union, it needs only a majority vote.
The tradeoff. Supporters, including the firefighters union, the Fire Chief and the Mayor, point to slow response times and decades of underfunding. Opponents, including the Howard Jarvis Taxpayers Association, call it the third sales tax increase in two years and say the City should fund firefighters from its existing budget.
What this could mean for your property
FD is not a property tax or parcel tax, and owners are not billed. Retail landlords may watch whether a higher City rate affects tenant sales. Hillside owners could see more brush clearance and fire staffing, though no one has measured an effect on insurance.
Planning a sale or a project around these measures?
Prop TE, Charter Amendment PL and Prop 3 each touch the timing or the math of a sale or an entitlement. We can walk through what applies to your building.
Request a free valuation of your building
Prefer to talk it through?
Several nearby cities have measures with more at stake for owners than anything on the City ballot:
Ballot measure details can turn on a single defined word. Before you act on anything here, read the official materials from the California Secretary of State, the Los Angeles City Clerk and the LA County Registrar-Recorder. This article is general information, not legal or tax advice.
No. No statewide, LA County or City of Los Angeles measure changes the RSO, AB 1482 or the City’s eviction rules. Santa Monica and Cudahy have local rent and eviction measures.
No. Prop 43 applies only to taxes approved after January 1, 2027. Measure ULA stays in place: 4% on City of LA sales above $5.4 million and 5.5% at $10.9 million and up, under the thresholds in effect since July 1, 2026.
Owners on January 7, 2025 of residential property in the City of LA damaged or destroyed in the Palisades Fire, who sell by January 6, 2030. The Department of Building and Safety must verify the damage.
No. Measure FD is a sales tax, not a property or parcel tax.
California taxes capital gains as ordinary income, so a large gain can fall in the top state brackets in the year of sale. If Prop 3 passes, today’s rates of 10.3% to 12.3% on income above about $371,000 (single) or $743,000 (joint) continue. If it fails, those rates fall to 9.3% starting in 2031. Sales before 2031 are unaffected either way.
Only for projects that opt in and still need CEQA review. Prop 45 sets deadlines for agencies and courts and freezes the rules at application. Many infill housing projects already qualify for a CEQA exemption under AB 130 (2025), so the biggest change is for larger, discretionary or non-infill projects.
Sources and further reading
This guide is general information for property owners, not legal or tax advice, and it does not recommend a vote on any measure. Confirm how a measure applies to your property with counsel or a tax advisor before acting.
No. No statewide, LA County or City of Los Angeles measure changes the RSO, AB 1482 or the City's eviction rules. Santa Monica and Cudahy have local rent and eviction measures.
No. Prop 43 applies only to taxes approved after January 1, 2027. Measure ULA stays in place: 4% on City of LA sales above $5.4 million and 5.5% at $10.9 million and up, under the thresholds in effect since July 1, 2026.
Owners on January 7, 2025 of residential property in the City of LA damaged or destroyed in the Palisades Fire, who sell by January 6, 2030. The Department of Building and Safety must verify the damage.
No. Measure FD is a sales tax, not a property or parcel tax.
California taxes capital gains as ordinary income, so a large gain can fall in the top state brackets in the year of sale. If Prop 3 passes, today's rates of 10.3% to 12.3% on income above about $371,000 (single) or $743,000 (joint) continue. If it fails, those rates fall to 9.3% starting in 2031. Sales before 2031 are unaffected either way.
Only for projects that opt in and still need CEQA review. Prop 45 sets deadlines for agencies and courts and freezes the rules at application. Many infill housing projects already qualify for a CEQA exemption under AB 130 (2025), so the biggest change is for larger, discretionary or non-infill projects.
