Overview
- The proposed Billionaire Tax Act would levy a one-time 5% tax on California residents with net worth of $1 billion or more, applying retroactively to those resident as of January 1, 2026.
- Sergey Brin moved or terminated 15 California LLCs just before Christmas, with seven converted to Nevada entities, while Larry Page’s network filed dozens of California LLCs inactive or out of state and a trust tied to him bought $173 million in Miami real estate.
- Other high-profile figures have reduced California ties, including Peter Thiel opening a Miami office and David Sacks announcing an Austin office, with reports of additional billionaire relocations.
- The initiative, sponsored by SEIU–UHW, needs roughly 875,000 valid signatures by June 24 to reach the November 2026 ballot, and backers cite potential revenue near $100 billion if targeted residents remain.
- Reaction among tech leaders is split, with Nvidia’s Jensen Huang saying he is perfectly fine with the tax and Governor Gavin Newsom warning that wealthy residents can relocate in a competitive environment.