Overview
- SEIU-UHW and allied health groups have asked Attorney General Rob Bonta to approve ballot language, launching a drive for 874,641 valid signatures by spring to qualify for November 2026.
- The proposal targets roughly 200 state billionaires with a single 5% tax on net worth, and backers estimate it would raise about $100 billion.
- Revenue would be deposited in a special fund with 90% for health care and 10% for K-12 education, with money potentially available for appropriation in 2027.
- Coverage differs on whether the tax base is 2025 or 2026 net worth, and proponents describe a structure that could allow payment over five years and limit avoidance by relocation.
- Passage is uncertain as Gov. Gavin Newsom has opposed wealth taxes and taxpayer groups warn of precedent and outmigration, while supporters cite projections of roughly $30 billion in annual Medi-Cal losses and up to 3.4 million people losing coverage under the new federal law.