SACRAMENTO, Calif. (Diya TV) — California voters will decide in November whether to impose a one-time tax on state residents with more than $1 billion in net worth.
Proposition 40 would levy a tax equal to 5% of a billionaire’s net worth if the person was a California resident on Jan. 1, 2026. The tax would be due in 2027, although taxpayers could spread payments over five years at a higher total cost.
The measure generally includes assets such as businesses, securities, art, collectibles and intellectual property. Real estate, pensions and retirement accounts would generally be excluded.
Proposition 40 would direct 90% of the revenue to health care. The remaining funds would go toward food assistance, education-related programs and administration of the tax. The measure bars the state from using the revenue to replace existing funding for those programs.
The Legislative Analyst’s Office estimates the tax would generate tens of billions of dollars over several years. It also estimates California could lose less than $1 billion annually in income tax revenue from billionaires on an ongoing basis.
The measure qualified for the Nov. 3 ballot after supporters submitted enough valid petition signatures.
Supporters listed in the state voter guide include U.S. Sen. Bernie Sanders and SEIU United Healthcare Workers West. They argue the measure would provide additional funding for health care programs.
Opponents listed in the voter guide include the California Primary Care Association, California School Boards Association and California Taxpayers Association. They argue the tax could reduce future state income tax collections if wealthy residents leave California.
California voters will decide Proposition 40 in the Nov. 3 general election.
