On November 5, voters cast their ballots to determine who would fill a variety of federal, state, and local offices. Several states also considered tax related ballot initiatives. We describe some of the more significant ballot initiatives and their results.

Sales Tax

There were a few states with ballot initiatives that would exempt items from the state sales tax. For example, South Dakota’s Measure 28 would prohibit the imposition of the sales tax on “anything sold for human consumption, except alcoholic beverages and prepared food.” However, voters overwhelmingly rejected this measure with approximately 70% voting No.

In Nevada, Question 5, which was put forward by the Nevada Legislature, will exempt the sale of child and adult diapers from the sales and use tax. Voters approved this measure with approximately 70% voting Yes. The exemption goes into effect on January 1, 2025 and expires on December 31, 2050.

In California, San Diego County’s Measure G would increase the sales tax by 0.5% and use the additional funding to repair and upgrade infrastructure. As of Wednesday (November 6) afternoon, voters have rejected this proposal with approximately 52% voting No. Similarly, the city of San Diego’s Measure E sought to increase the sales tax by 1%, but it appears voters have also rejected this proposal with approximately 51% voting No.

Income Tax

In Washington, Measure 2109 was on the ballot to repeal the controversial capital gains tax. However, voters soundly rejected the repeal with approximately 63% voting No.

In Illinois, Question 2 requested voter’s opinion on whether the state should raise taxes on higher incomes in order to fund property tax relief. Voters responded favorably with approximately 60% voting Yes. However, it should be noted that Question 2 was an advisory opinion measure which allows government officials to gauge public opinion, but it is not binding.

In Oregon, Measure 118 would have imposed a controversial 3% minimum tax on corporations with Oregon sales exceeding $25M and would have funded rebates of up to $1,600/year to all Oregon residents. However, the measure was widely opposed by both conservative and progressive groups and voters soundly rejected the measure with almost 79% voting No.

Finally, in California, San Francisco’s Proposition M will make a variety of changes to the city’s business taxes including changing the rates for the gross receipts tax, the homelessness gross receipts tax, the overpaid executive gross receipts tax, and the administrative office tax. Voters agreed with enacting these changes with almost 70% voting Yes.

Property Tax

In North Dakota, Measure 4 would have eliminated most property taxes, making North Dakota the only state without property taxes. However, it also would have required the state to make annual payments to local governments to compensate for the lost property tax revenue. Ultimately, voters decided to keep the property tax, with almost 64% voting No.

Administrative

In Georgia, Amendment 2 will create the independent (i.e., judicial branch) Georgia Tax Court. This court will replace the Georgia Tax Tribunal, which is part of the executive branch. Appeals from the Georgia Tax Court will be to the Georgia Court of Appeals.  This amendment passed with 52% voting Yes.