California's Proposition 40, a one-time 5% wealth tax on residents worth over $1 billion, failed at the ballot box according to the Associated Press. The measure, which would have applied retroactively to anyone residing in the state as of January 1, 2026, was opposed by Gov. Gavin Newsom and faced a costly campaign pitting labor unions against wealthy tech figures. Supporters had said the tax could generate up to $100 billion for programs including Medi-Cal.
techcrunch.com
· 2026-11-10
Meta's board approved a new non-voting Class C common stock class, effective January, which the company says will fund capital raising, employee pay and acquisitions tied to its AI push. The New York Times reports an SEC filing shows the plan was also shaped by CEO Mark Zuckerberg's concerns about California's proposed Proposition 40 billionaire tax, which could impose a one-time 5% levy on billionaires' net worth.
techcrunch.com
· 2026-10-22
Meta disclosed in a quarterly filing that it created a new class of non-voting stock, effective January, that could help offset taxes Zuckerberg would owe if California's Proposition 40 billionaires tax passes on Nov. 3. In exchange, Zuckerberg has committed to remain a California resident for eight years, with exceptions for unforeseen circumstances. The 5% tax would apply to Californians worth over $1 billion; Zuckerberg's net worth is about $225 billion.
cnbc.com
· 2026-10-22
A Meta regulatory filing reveals Mark Zuckerberg agreed to remain a California resident for eight years, even though a ballot measure could impose a one-time 5% tax on billionaires' assets starting January 2026. Zuckerberg had considered moving, listing his Palo Alto home for sale and buying property in Florida, before Meta's special board committee negotiated the residency commitment tied to his ability to sell a new class of non-voting shares.
wired.com
· 2026-10-21
Billionaire investor Mark Cuban has publicly criticized California's Proposition 40, a proposed 5% wealth tax targeting billionaires. Cuban argues the measure would disproportionately harm startup founders whose net worth is tied up in illiquid company equity rather than cash, making it difficult for them to pay a tax based on paper wealth.
fastcompany.com
· 2026-08-25
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