Overview
- The proposal would tax personal net worth above roughly $1.1 billion at 5% for tax year 2026, with a slightly lower rate between $1.0 billion and $1.1 billion.
- An SEIU-led coalition submitted the measure to the state Attorney General in late October to obtain a title and summary before signature gathering begins.
- To reach the November 2026 ballot, proponents must collect at least 874,641 valid voter signatures by spring 2026.
- The draft covers California residents, part‑year residents and certain trusts, imposes 20–40% penalties for understatements, and allocates up to $15 million annually for enforcement.
- Analysts warn revenue timing and totals are uncertain given likely legal and administrative hurdles, and they note prior estimates put similar tax administration costs at $200–$300 million per year.