Overview
- Proposition 40 would impose a one-time 5% levy on residents with net worth of $1 billion or more as of January 1, 2026 to fund health programs.
- Several billionaires moved or restructured their holdings before the residency cutoff, with Fortune reporting Larry Page's departures and Miami purchases that would have avoided an estimated $15 billion liability for him.
- Those departures have already cut the measure's potential take, with Fortune estimating Page, Sergey Brin, Peter Thiel and Travis Kalanick together would have owed about $29 billion.
- Opponents have outspent supporters by a wide margin and backed two rival measures, Propositions 41 and 42, that would cancel Prop 40 if they receive more yes votes.
- Polling shows no consistent majority for Prop 40 and analysts warn retroactive application, asset valuation rules and residency fights could prompt court challenges and reduce actual collections, putting promised health funding at risk.