Overview
- State election officials verified enough valid signatures Wednesday, making the union-backed wealth levy eligible for the Nov. 3, 2026 ballot unless proponents withdraw it by June 25.
- The original proposal would charge a one-time 5% tax on residents with net worth above about $1 billion to $1.1 billion, with 90% of revenue earmarked for health care and the rest for education and food assistance.
- Backers publicly proposed a scaled-down 2% version as a bargaining move to secure Governor Gavin Newsom’s support and avoid a costly fall campaign.
- Opponents led by Building a Better California, funded largely by tech donors including Sergey Brin, have poured tens of millions into defeating the measure and promoting rival ballot options that could limit or block the tax.
- The nonpartisan Legislative Analyst’s Office says the plan could raise tens of billions of dollars but warned revenue is uncertain and that wealthy out-migration could reduce future income tax collections.