Overview
- Supporters did not withdraw the initiative by the Thursday deadline so the California Billionaire Tax Act is officially set for the Nov. 3, 2026 ballot.
- The measure would impose a one-time 5% net-worth tax on people with more than $1 billion in assets as of Jan. 1, 2026, let payments be spread over five years, and exclude some real estate and certain retirement accounts.
- Gov. Gavin Newsom rejected a negotiated compromise with the union backers and publicly pledged to campaign against the state measure while urging Congress to pass a national billionaire minimum tax instead.
- Wealthy residents and allied groups have responded by moving assets and spending heavily to oppose the measure, with the PAC Building a Better California raising tens of millions and at least two rival ballot initiatives qualified that would nullify or constrain the tax if they receive more votes.
- Legal, valuation and enforcement questions leave revenue uncertain and could produce ripple effects for California’s budget and the state’s tech-driven economy if some billionaires relocate or shift holdings out of state.