Overview
- The proposal remains in the signature-gathering phase, with nearly 875,000 valid signatures due by June 24 to qualify for the November 2026 ballot.
- A Jan. 1, 2026 residency rule would make those who lived in California on that date liable, prompting reported relocations and restructurings by figures linked to Google and Thiel even as union backers say most billionaires stayed.
- State analysts project tens of billions in one-time revenue but warn of potential long-term losses if high earners leave; taxes would be due in 2027 with a five-year payment option that carries added costs and excludes real estate and retirement accounts.
- Democratic critics including Gov. Gavin Newsom, Katie Porter and Silicon Valley’s Sam Liccardo argue taxing unrealized wealth could hurt startups and future revenue, while Nvidia’s Jensen Huang says he plans to remain in California.
- Attorneys for wealthy clients signal constitutional challenges if the measure advances, and the politics are split, with endorsements from Sen. Bernie Sanders and Rep. Ro Khanna countered by business-backed opposition.