Overview
- Both measures failed in the June 2, 2026 election with Proposition C losing about 64%–36% and Proposition D rejected roughly 55%–45%.
- Proposition D would have raised the Top Executive Pay Tax by using all company employees to calculate the median pay and by increasing rates, a change supporters said could have produced $250 million to $300 million a year.
- Proposition C would have raised the gross‑receipts exemption from $5 million to $7.5 million and accelerated a scheduled executive‑pay tax increase into 2027 while freezing further rate hikes; it also included language that would let the higher‑vote measure prevail if both passed.
- The campaign was heavily funded and polarized, with labor unions backing Prop D and business groups plus wealthy tech donors backing Prop C, and supporters and opponents together raising roughly $10 million before the vote.
- With both measures rejected, Mayor Daniel Lurie and the Board of Supervisors must now choose between new revenue proposals, deeper service cuts, or further layoffs to close an estimated two‑year budget gap of more than $600 million.