Tom Steyer supports a special election for extra taxes on corporations.

Tom Steyer’s 2027 Special Election Proposal

Gubernatorial candidate Tom Steyer is pushing for a special election in 2027 aimed at amending Proposition 13 in California. His proposal involves reassessing commercial real estate based on current market values, which would reignite a controversial tax debate in the state.

Steyer noted that he has communicated this initiative to his campaign staff, some of whom are affiliated with left-leaning New York Mayor Zoran Mamdani. In a discussion with Politico, he mentioned his discussions with union leaders, expressing his support for raising corporate taxes through this special election.

“The major Republican tax bill is really going to impact California’s budget significantly,” Steyer explained, referring to cuts in health care associated with President Trump’s recent tax overhaul.

“We really can’t delay. Time is of the essence. So, a special election seems to be the only viable route to make this happen,” he emphasized.

Originally passed in 1978 as a response to rising property taxes, Proposition 13 modified the state constitution to cap the property tax rate at 1% of assessed value, while limiting increases in property values to 2% annually unless ownership changes.

The goal of Prop 13 was to protect homeowners, particularly retirees on fixed incomes, from being overwhelmed by escalating taxes as property values increased.

Over the years, Proposition 13 has become foundational to California’s tax structure.

A “split-roll” approach, favored by labor organizations and progressive activists, seeks to maintain the existing limits on residential property taxes while periodically updating valuations for commercial and industrial properties. The intention here is to generate substantial new revenue for education and local governments, although critics argue that this could lead to higher costs for businesses and have wider economic implications.

For Steyer and other Democratic candidates, gaining the backing of labor unions is crucial to their campaigns.

Recent polling from Emerson College/Inside California Politics indicates that Steyer is trailing behind the leading candidates within his party and the overall race. Among voters in the upcoming June primary, Republican Steve Hilton has a slight lead at 17%, followed by U.S. Rep. Eric Swalwell and Riverside County Sheriff Chad Bianco, both at 14%, former U.S. Rep. Katie Porter at 10%, and Steyer bringing up the rear at 9%.

Specifically, in the Democratic voter segment, Steyer managed to secure 12%, while Swalwell garnered 23% and Porter 14%, underlining that he still has some ground to cover in gaining favor among party members.

Experts consulted by the California Post voiced concerns about the proposed corporate tax increase, warning that it might drive businesses to relocate out of state.

“This isn’t about tax reform; it’s a path to economic collapse. When you penalize job creators, the impact doesn’t just land on the wealthy; it’s workers who face layoffs, rising prices, and vacant storefronts,” warned Ted Jenkin, managing partner at Exit Wealth Advisors.