The initiative is a measure to increase taxes to prevent US$6 billion cuts to the education budget for California state schools.

[4] The measure also provides for an increase in the state sales tax by 0.25 percent over 4 years (from January 1, 2013 through December 31, 2016).

The governor described the proposition as essential for preserving education funding, stating that "The California dream is built on great public schools and colleges and universities.

[8] Many local municipalities impose additional sales taxes on top of the standard statewide rate.

As previous to Prop 30 there is an additional 1% tax applicable to single and married filers with taxable income of over $1,000,000.