California's Proposition 40 Billionaire Tax Heads to November 3 Vote
Californians vote November 3 on Proposition 40, a one-time 5% billionaire wealth tax opposed by Governor Newsom.
Event / Economy
Meta Class C Stock Creation
Meta's board approved a new class of nonvoting Class C common stock, effective January 2027, after Mark Zuckerberg said he was evaluating relocating outside California due to Proposition 40, a proposed one-time 5% tax on billionaire wealth on the November 3, 2026 California ballot. Zuckerberg committed to remain a California resident, or to follow Meta's headquarters, for eight years, and may sell up to 20% of his Class C shares without losing his voting majority. Meta cites leadership continuity and AI investment needs. Supporters cite healthcare funding, while opponents and some economists warn of billionaire departures and revenue shortfalls.
3 reported locations
Daily activity
2 articles0 articles
2026-10-23 to 2026-10-26 · UTC publication dates
Coverage begins 23 Oct, 01:23 UTC
Follow the documented timeline or explore the related reporting.
What happened
California Legislative Analyst's Office estimates tax could generate tens of billions of dollars
The California Legislative Analyst's Office estimates that the wealth tax could generate tens of billions of dollars over several years.
California Legislative Analyst's Office estimates income tax revenue loss under $1 billion annually
The California Legislative Analyst's Office estimates that billionaire departures and other behavioral changes could reduce state income tax revenue by less than $1 billion annually.
Zuckerberg can sell up to 20% of Class C shares without reducing voting majority
Under the arrangement, Zuckerberg can sell or transfer up to 20% of the Class C stock he receives. This portion represents about 10% of his overall economic stake in Meta, and the sale would not reduce his voting majority.
Stanford economists question whether the tax could reduce revenue
Stanford University economists have questioned whether the billionaire tax could backfire. They note that several billionaires have already left California, and further departures could reduce projected wealth tax revenue and overall income tax collections.
Nvidia CEO Jensen Huang says he does not mind paying more taxes
Nvidia CEO Jensen Huang has said he does not object to paying higher taxes in relation to the proposed billionaire wealth tax.
Zuckerberg told Meta he is evaluating relocating outside California
Mark Zuckerberg told Meta's board that he is evaluating relocating his primary residence outside California because of the proposed billionaire wealth tax. Any step toward relocation, including listing his California residential real estate for sale, would become public and could raise questions for company management.
Zuckerberg's potential Proposition 40 tax estimated at about $12.4 billion
Based on an estimated net worth of $247 billion from the Bloomberg Billionaires Index, Zuckerberg's potential liability under the proposed 5% tax would be about $12.4 billion. Stock price fluctuations would change this estimate.
California Democratic Party endorses Proposition 40; Governor Gavin Newsom opposes it
The California Democratic Party has endorsed Proposition 40. Governor Gavin Newsom is among prominent Democrats who oppose the measure.
More than $300 million contributed to campaigns against the billionaire tax
More than $300 million has been contributed to fight the billionaire tax. This includes two competing propositions that could block the tax if they receive more votes.
Proposition 40 projected to raise $100 billion for California healthcare
Proposition 40 is designed to raise about $100 billion from California's wealthiest residents, with the revenue earmarked for strengthening the state's healthcare system.
Meta special committee of independent directors unanimously recommends Class C stock
A special committee of independent directors unanimously recommended the new nonvoting stock class. The committee concluded that the stock would help finance Meta's growth and preserve Zuckerberg's leadership, and emphasized his presence in California for coordination with management and the Superintelligence Labs.
Meta CFO describes Class C shares as preserving Class A and B voting power
Meta Chief Financial Officer Susan Li described the new nonvoting shares as usable for capital raising, employee compensation, acquisitions and other general corporate purposes while preserving the voting power of existing Class A and Class B shareholders. She made the statement during the third-quarter earnings call.
Meta plans to use Class C stock to help fund AI infrastructure investments
Meta plans to use the nonvoting Class C stock partly to raise capital for artificial intelligence infrastructure investments, in addition to employee compensation, acquisitions and general corporate purposes.
Meta board approves new nonvoting Class C common stock
Meta's board approved a new class of publicly traded nonvoting Class C common stock, scheduled to take effect in January 2027. The stock can be sold to raise capital, compensate employees, fund acquisitions and for other general corporate purposes.
Proposition 40 billionaire wealth tax is on California's November 3 ballot
Proposition 40, a proposed measure for a one-time 5% state tax on billionaire wealth, will be decided by California voters on November 3, 2026.
Proposition 40 tax would be due in 2027 and payable over five years
If approved, the Proposition 40 tax would be due in 2027. Payments could be spread over five years, at an additional cost.
Palmer Luckey, Chris Larsen and Sergey Brin oppose the billionaire tax
Billionaires Palmer Luckey, Chris Larsen and Sergey Brin have publicly opposed the proposed billionaire wealth tax.
Real estate, pensions and retirement accounts would generally be excluded from Proposition 40
Under Proposition 40, real estate, pensions and retirement accounts would generally be excluded from the billionaire wealth tax.
Zuckerberg commits to remaining a California resident for eight years
In exchange for the Class C stock arrangement, Mark Zuckerberg committed to remain a California resident for eight years. If Meta moves its headquarters to another state, he would move to that state as well.
Proposition 40 would impose a one-time 5% tax on billionaire wealth
Proposition 40 would impose a one-time 5% tax on the net worth of billionaires who were California residents on January 1, 2026.
Read the coverage
2 alternative perspectives
Meta Board Approves Nonvoting Class C Shares Amid Founder Voting Control
Meta's board approved nonvoting Class C stock, with Zuckerberg keeping about 60% of voting power on 13% of shares.