Overview
- Voters rejected Proposition 40 with about 52.8% voting No, a result called by the Associated Press on Monday and confirmed by multiple outlets.
- Opponents led by tech billionaires outspent backers roughly $378.4 million to $33.5 million, financing ads and two rival measures designed to nullify the wealth levy.
- Proposition 42 carried enough votes to prohibit taxes on personal savings and assets, which would have blocked Prop 40 even if it had passed.
- Post‑vote reporting shows many large donations came as appreciated stock, a tactic that let wealthy donors avoid capital‑gains tax under current federal rules and is now drawing scrutiny.
- The campaign split California Democrats, with progressives backing the levy and Governor Gavin Newsom opposing it, and the outcome is likely to push advocates toward federal proposals or alternative state taxes on high earners.