Overview
- The citizen initiative would impose a one‑time 5% tax on individual wealth above $1 billion, applied retroactively to anyone counted as a California resident on Jan. 1, 2026, with an option to pay over five years with interest.
- The proposal targets worldwide assets including company stakes, stocks and bonds, artwork, collectibles and intellectual property, while excluding directly held real estate, pensions and retirement accounts.
- The measure has not qualified for the ballot and still must gather roughly 900,000 valid signatures to reach a potential November vote.
- Peter Thiel donated $3 million on Dec. 29 to Californians Against Higher Taxes, and the California Business Roundtable is seeking roughly $75 million for the broader opposition effort, according to reports.
- At least two tech billionaires ended California residency before Jan. 1, with Larry Page relocating his base to Florida and Thiel opening a Miami office, as Gov. Gavin Newsom voiced opposition to the tax and Nvidia’s Jensen Huang said he intends to stay.