SACRAMENTO—California voters will decide in November whether to approve a one-time tax on the wealth of the state's billionaires after a ballot initiative advanced following the completion of the state's qualification process, setting up a high-profile fight over taxation, healthcare funding and the state's fiscal policy.
The proposal would impose a one-time tax of up to 5% on the covered assets of individuals and trusts with more than $1 billion in wealth, according to the California Secretary of State's office. Revenue would be directed primarily toward healthcare, with additional funding allocated for food assistance or education-related programs, as outlined in the initiative's official summary.
The measure reached the November ballot after supporters submitted enough valid petition signatures under California's initiative process. State election officials listed the proposal among measures eligible for the Nov. 3, 2026, statewide ballot after county officials verified the required signatures.
Supporters, led by Service Employees International Union-United Healthcare Workers West and the Billionaire Tax Now campaign, say the measure would help offset reductions in healthcare funding and provide additional resources for public programs. Campaign spokesperson Debru Carthan said in a statement released after the measure advanced, "Today we're making it clear that we aren't backing down—the billionaire tax will be on the ballot this November, and we intend to win."
Opposition has come from Democratic Gov. Gavin Newsom, business groups and a coalition of organizations that argue the proposal could make California's finances more volatile and encourage wealthy residents to relocate. According to multiple published reports, Newsom has said he favors a federal wealth tax rather than a state-level measure, arguing that a nationwide approach would be more effective.
The initiative's official summary states that covered assets would include businesses, securities, art, collectibles and intellectual property, while excluding real property and certain pension and retirement accounts. The Legislative Analyst and the Department of Finance estimate the proposal would temporarily increase state revenues through the new tax if approved by voters.
The measure has emerged as one of the most closely watched ballot contests in California, drawing significant financial backing from supporters and opponents. Public debate has centered on whether the tax would generate substantial revenue for public services or create economic and legal challenges, including questions over implementation that critics say could be litigated if voters approve it.
The proposal is scheduled to appear before California voters in the Nov. 3 general election. No statewide vote has yet been held, and the outcome will be determined at the ballot box.
