Dear CREDA,

I'm pleased to share CREDA SoCal's 2026 Ballot Measure Guide ahead of the November 3, 2026 General Election. Several statewide and local ballot measures this year have important implications for the commercial real estate industry, jobs, economic growth and the quality of life in our communities.

CREDA SoCal's positions reflect our commitment to constructive dialogue and balanced policy solutions on issues involving land use, taxes, regulations, building codes, and development restrictions. As a nonpartisan organization, our positions are guided by policy considerations, not political affiliations.

With 122 cities, two major counties (Los Angeles and Orange), and numerous special districts throughout our region, this guide focuses on select statewide propositions rather than every election contest. Our positions were developed with valued input from CREDA SoCal's Legislative Affairs Committee, which is open to all CREDA SoCal Members.

With ballots arriving in mailboxes, I encourage you to review our 2026 Voter Guide, consider the issues, and participate in this important election. Your voice matters!

Sincerely,

Tim Jemal

CEO

CREDA SoCal

City of Alhambra (Los Angeles County)

Measure DB: Alhambra Data Center Ban Measure

NO

CREDA SoCal Position: OPPOSE

What It Would Do: Measure DB would formally establish a citywide prohibition on data centers by amending the Alhambra Municipal Code to define data centers and prohibit their operation in all zoning districts. The measure would reinforce the City Council's previously adopted restrictions. The measure calls for voter approval to any future changes to the ban, as opposed to ordinary City Council action.

Economic and Business Considerations: Supporters argue that the prohibition would help address concerns surrounding data centers' electricity and water consumption, environmental impacts, and compatibility with surrounding communities. Opponents contend that a blanket prohibition unnecessarily restricts commercial and industrial land uses, eliminates potential investment and job opportunities, and limits the City's flexibility to accommodate emerging technologies. They argue that targeted regulations could address environmental and infrastructure concerns without imposing a categorical ban.

Notable Supporters: No Data Centers San Gabriel Valley Coalition; Alhambra City Council (sponsor); Jeffrey K. Maloney; Adele Andrade-Stadler; Ross Maza; Noya Wong; Katherine Lee (signers of the ballot argument in favor).

Notable Opponents: Reform California.

City of Paramount (Los Angeles County)

Measure P: Public Safety, Environment, Streets and Business Improvement Measure

NO

CREDA SoCal Position: OPPOSE

What It Would Do: Measure P would establish an annual parcel tax exclusively on commercial and industrial properties in the City of Paramount. The City estimates that the measure would generate approximately $4 million annually for public safety, infrastructure improvements, environmental services and business reinvestment programs. The proposed tax would be assessed at $0.08 per square foot for commercial properties, $0.11 for industrial properties, and $0.13 for vacant commercial or industrial land. Residential properties would be exempt. The tax would be phased in over three years beginning in 2027, with subsequent annual increases capped at 3%.

Economic and Business Considerations: Supporters argue that the additional revenue would help address road deterioration, public safety demands, environmental concerns and infrastructure costs associated with commercial and industrial activity. Opponents contend that placing the tax burden exclusively on commercial and industrial property owners creates additional recurring costs, disproportionately affects industrial properties and vacant commercial land, and could discourage investment, reinvestment and business expansion. The City estimates an average annual tax of approximately $3,766 per affected parcel at full implementation, with significantly higher costs for large properties.

Additional Consideration: Measure P is a special parcel tax requiring approval by two-thirds of voters.

Notable Supporters: Paramount Mayor Brenda Olmos; Los Angeles County Sheriff Robert Luna; Coalition for Clean Air.

Notable Opponents: Reform California.

Proposition 40: One-Time Wealth Tax on Billionaires

NO

CREDA SoCal Position: OPPOSE

What This Measure Would Do: Proposition 40 would impose a one-time 5% tax on the net worth of California residents whose wealth exceeded $1 billion as of January 1, 2026. Sponsored by SEIU United Healthcare Workers West (SEIU-UHW), the measure is projected by its proponents to generate approximately $100 billion over several years. Ninety percent of the revenue would fund healthcare services, with the remainder allocated to education, food assistance, and tax administration.

Considerations for CRE Industry: Supporters argue that the tax would provide substantial resources for healthcare programs facing funding challenges. Opponents contend that it could encourage wealthy residents and business investors to relocate, potentially reducing California's income tax base and affecting future investment and economic growth. The state's Legislative Analyst estimates temporary revenues in the tens of billions of dollars, with a possible ongoing reduction in state income tax collections.

Supporters: Service Employees International Union–United Healthcare Workers (SEIU-UHW); California Democratic Party; California Labor Federation; Teamsters California; American Federation of State, County and Municipal Employees (California).

Opponents: California Chamber of Commerce; California Business Roundtable; California Medical Association; California Primary Care Association; California School Boards Association; California Taxpayers Association; California Teachers Association.

Proposition 41: Requires Audits of New State 
Special Tax Programs

YES

CREDA SoCal Position: SUPPORT

What This Measure Would Do: Proposition 41 would require the California State Auditor to review programs funded by proposed new or increased state special taxes initiated by voters. The auditor would identify opportunities to reduce annual program costs by 10%, with recurring audits taking place every four years for programs funded by newly approved special taxes. The measure would also restrict exemptions of new state tax revenues from California’s constitutional spending limit.

Considerations for CRE Industry: Supporters argue that independent audits would strengthen fiscal accountability, increase transparency, and identify opportunities for greater efficiency before additional taxes are imposed. Opponents argue that the requirements could create additional barriers to raising revenues for important public programs, particularly in the areas of healthcare and education.

Supporters: California Chamber of Commerce; CalAsian Chamber of Commerce; California Society of Certified Public Accountants; California Taxpayers Association; Howard Jarvis Taxpayers Association.

Opponents: SEIU-UHW; California Democratic Party; California State PTA

Additional Consideration: Proposition 41 could prevent Proposition 40 from taking effect if both measures pass, Prop. 41 receives more affirmative votes, and courts determine that their provisions conflict.

Proposition 42: Prohibits New State 
Personal Property and Retroactive Taxes

YES

CREDA SoCal Position: SUPPORT

What This Measure Would Do: Proposition 42 would amend California’s Constitution to prohibit new state taxes based solely on ownership of personal property, including financial investments, stocks, retirement savings and business interests. It would also restrict retroactive state tax increases. This measure will not repeal existing local taxes on business equipment and other taxable personal property.

Considerations for CRE Industry: Supporters argue that the measure would provide greater tax predictability for households, investors and businesses by preventing new wealth-based taxes and limiting retroactive taxation. Opponents contend that the restrictions would reduce California's flexibility to generate future revenues for public services, including healthcare.

Supporters: AMVETS Department of California; California Chamber of Commerce; California Multicultural Business Alliance; California Professional Firefighters; California State Council of Laborers; Peace Officers Research Association of California; State Building and Construction Trades Council of California.

Opponents: SEIU-UHW; California Democratic Party; California Democratic Socialists of America.

Additional Consideration: Like Proposition 41, Proposition 42 could prevent Proposition 40 from taking effect if both measures pass, Proposition 42 receives more affirmative votes, and courts determine that their provisions conflict.

Proposition 43: Requires Two-Thirds Voter Approval 
for Local Special Taxes

YES

CREDA SoCal Position: SUPPORT

What This Measure Would Do: Proposition 43 would require local special taxes proposed through citizen initiatives to receive at least two-thirds voter approval, rather than the simple majority (50% + 1) currently permitted under court decisions. Beginning January 1, 2027, the higher threshold would apply to new, increased or extended voter-driven local special taxes. Local special taxes proposed by local governing bodies already generally require two-thirds voter approval.

Considerations for CRE Industry: Supporters argue that the measure would establish consistent voter approval requirements for local special taxes, strengthening taxpayer protections and limiting the potential for additional local tax burdens. Opponents contend that requiring a two-thirds majority could make it more difficult for communities to fund infrastructure, emergency services, schools and other local priorities.

Supporters: Howard Jarvis Taxpayers Association; California Chamber of Commerce; California Business Roundtable; California Hispanic Chambers of Commerce; California Taxpayers Association; Family Business Association of California; California Business Properties Association.

Opponents: California Democratic Party; California Federation of Teachers; California Professional Firefighters; Evolve California; Nurse Alliance of SEIU California.

Proposition 45: Building a More Affordable California Act: Streamlines Environmental Reviews for 
Housing and Infrastructure 

YES

CREDA SoCal Position: SUPPORT

What This Measure Would Do: Sponsored by the California Chamber of Commerce, Proposition 45 would establish new and expedited procedures under the California Environmental Quality Act (CEQA) for qualifying projects, including housing, transportation infrastructure, water systems, clean energy facilities, schools, hospitals, medical offices, broadband infrastructure and wildfire mitigation. The measure would establish a 365 business-day deadline for completing environmental impact reports – subject to enforcement procedures – and generally require courts to resolve legal challenges within 270 calendar days, with limited extensions. It would also change certain requirements involving project alternatives, public comments and judicial review. Eligible applicants could choose between the new procedures and existing law.

Considerations for CRE Industry: Supporters argue that more predictable environmental review and litigation could reduce project delays, financing uncertainty and construction costs while helping California deliver needed housing and infrastructure. Opponents argue that the measure would narrow environmental review, limit public participation and tribal consultation, and reduce judicial remedies for projects with potentially significant environmental impacts. Commercial real estate projects generally will not qualify under this measure's expedited procedures, although associated infrastructure projects could affect investment and development activity in a given jurisdiction.

Supporters: California Building Industry Association; California Children's Hospital Association; California Council for Affordable Housing; California Hispanic Chambers of Commerce; California Water Association.

Opponents: California Environmental Voters; California Labor Federation; California Nurses Association; Coalition for Clean Air; National Wildlife Federation; Physicians for Social Responsibility-Los Angeles; Sierra Club California.

Questions on CREDA SoCal Legislative Affairs or on joining the Leg. Affairs Committee? Contact CREDA SoCal Government Affairs Manager Mihran Toumajan, mtoumajan@credasocal.org.