Tax Fighters Won't Budge: Howard Jarvis Group Defies Newsom, Lawmakers on November Ballot

It’s a standoff that’s been brewing for weeks, and California’s tax debate just got real. Governor Gavin Newsom and state lawmakers have been pulling out all the stops trying to convince the Howard Jarvis Taxpayers Association to yank their Local Taxpayer Protection Act from the November ballot—but HJTA President Jon Coupal isn’t backing down.

Here’s what’s at stake: The measure would fundamentally reshape how California funds its cities and counties by requiring a two-thirds vote from residents to approve any local special tax increase. Right now, special taxes proposed by local governments already need that super-majority, but citizen-backed initiatives can pass with just 50 percent plus one. The proposal also caps real estate transfer taxes at 0.11%, which state leaders see as a direct threat to local government budgets already stretched thin.

To understand why Newsom and the legislature are sweating bullets, consider this: local governments depend heavily on those tax mechanisms to fund schools, roads, public safety, and social services. A two-thirds requirement across the board would make it exponentially harder to fund basic services, especially in communities facing genuine crises. The timing couldn’t be more contentious. State and local budgets are already bleeding money, and this measure would tighten the screws even further.

But Coupal’s position is crystal clear. He argues California has become a“tax-producing machine”—touting the state’s 13.3% income tax rate (highest in the nation), 7.25% sales tax rate (also the highest), plus the highest gas tax in America. His message to skeptics? Compare your city’s budget from five years ago to today, then ask where all the money went. It’s a blunt challenge to local officials to prove they’re being fiscally responsible before demanding taxpayer relief.

The Howard Jarvis Taxpayers Association says the entire effort stems from state court decisions that undermined Proposition 13, the legendary 1970s property tax law that capped property tax increases. In their view, closing those loopholes is simply defending what voters approved nearly 50 years ago.

What makes this fight genuinely compelling is the clock. The Secretary of State must certify all ballot initiatives by Thursday, giving state leaders and the HJTA just days to either reach a deal or see this measure locked in for November. Los Angeles Mayor Karen Bass expressed optimism that negotiation could still pull it from the ballot, but Coupal’s resolve suggests that window is closing fast. Come fall, California voters will decide whether making taxes harder to raise is a feature or a bug in their state’s financial future.