Howard Jarvis Taxpayers Association Stands Firm: Local Taxpayer Protection Act Stays on November Ballot

Los Angeles Mayor Karen Bass claimed in a recent interview that a deal had been reached to keep the Local Taxpayer Protection Act off the November ballot. The Howard Jarvis Taxpayers Association (HJTA) immediately pushed back, declaring it will not withdraw the measure despite intense political pressure from lawmakers and the governor’s office (see below).

In an interview with NBC LA’s Conan Nolan, Bass said an agreement had been struck involving the anti-tax initiative. In exchange, she indicated Los Angeles would ask voters to amend the city’s “Mansion Tax” (Measure ULA) to exempt apartment developers. Bass suggested the situation could still evolve before a Thursday deadline.

Mayor @karenbass says an agreement has been reached to keep the anti-tax "Taxpayer Protection Act" off the November ballot. In exchange LA City will ask voters to approve an amendment to the so called "Mansion Tax" to exempt apartment developers. @nbcla @JeremyBWhite pic.twitter.com/OiXVMtltXP

— Conan Nolan (@conanNBCLA) June 23, 2026

On Tuesday HJTA President Jon Coupal and California Taxpayers Association (CalTax) President Robert Gutierrez issued a joint statement refusing to pull the Local Taxpayer Protection Act to Save Proposition 13. The groups emphasized that a partial legislative fix does not substitute for the broader constitutional protections voters deserve. 

“The Local Taxpayer Protection Act is intended to do just what its name says, including protecting taxpayers from local governments’ use of the Upland loophole to pass special taxes without the constitutionally required two-thirds vote of the public,” Gutierrez said. 

“While AB 736 highlights the problem of excessive local transfer taxes, it is not a substitute for the broader taxpayer protections that voters deserve.”

Coupal added: “The Howard Jarvis Taxpayers Association is leading the fight to reinstate the guardrails against excessive taxation upon which the taxpayers of California have relied for more than 40 years. We will never stop fighting for taxpayers.”

The Local Taxpayer Protection Act (LTPA), which has already qualified for the ballot with more than 1.3 million voter signatures, seeks to restore and strengthen key elements of Proposition 13 (1978). It would:

• Close the “Upland loophole” created by a 2017 California Supreme Court decision, which has allowed local special taxes to pass with a simple majority instead of the constitutionally required two-thirds vote when placed on the ballot via citizen initiative.
• Limit or sunset excessive real estate transfer taxes imposed by charter cities beyond the traditional low statutory rate.
• Reinstate stronger voter approval requirements for local taxes.

The measure would also invalidate certain previously passed property-related special taxes and high transfer taxes that bypassed Prop 13 safeguards.

Lawmakers advanced Assembly Bill 736 as an alternative, which would statutorily cap most local real estate transfer taxes at 1.5% statewide with some exceptions (including disaster-related relief). Proponents of the bill frame it as a housing production measure.

HJTA and CalTax argue AB 736 falls short because it is a statute rather than a constitutional amendment, leaving future loopholes open. It does not fully address the Upland decision or provide the permanent rollback and voter protections contained in the initiative.

Proposition 13 dramatically limited property tax increases and required two-thirds voter approval for many local special taxes. Over the decades, court rulings and legislative workarounds have eroded those protections, leading to billions in additional taxes on California homeowners and businesses without the original level of voter consent.

The LTPA represents a direct effort by taxpayer advocates to restore those original constitutional limits.

Mayor Bass’s comments come amid ongoing debates over housing costs, local revenue, and tax policy in Los Angeles and statewide. While she portrayed the situation as resolved through negotiation, HJTA’s clear rejection signals the measure will remain on the ballot for voters to decide in November.

With the withdrawal deadline reportedly passing and the group standing firm, California voters appear set to weigh in directly on strengthening Prop 13 safeguards.