Overview
- Reporting on Wednesday, July 15, 2026 revealed an FTB handbook that instructs auditors to probe whether wealthy former residents “substantially severed” ties to California when they left.
- The audit checklist includes children’s school records, vehicle registration, doctors and veterinarians, bank statements, travel logs, cell phone data, and social media activity as evidence of residency.
- News coverage named high-profile tech figures who relocated after the billionaire tax was proposed—Sergey Brin, David Sacks, and Travis Kalanick—as likely audit subjects under the retroactive January 1, 2026 rule.
- Legal experts and reporting say the FTB intends to pursue collection if Proposition 40 passes and that those targeted are preparing well-funded legal challenges that could tie the issue up in court.
- Investors and prediction markets have reduced their confidence that the 5% billionaire tax will pass, and analysts say the prospect of aggressive audits is already shaping campaign funding and voter expectations ahead of November.