A proposal to tax the wealth of billionaires in California has officially gathered enough signatures to appear on the November ballot, state officials announced.
The California Secretary of State's office said the initiative surpassed the signature threshold required to qualify for the Nov. 3, 2026, ballot, setting the stage for what could become one of the most expensive and closely watched political battles in state history.
The measure would impose a one-time tax of up to 5% on individuals and trusts with more than $1 billion in assets. Covered assets would include businesses, securities, art, collectibles, and intellectual property, while excluding real estate and certain retirement accounts.
According to the secretary of state on Wednesday, the initiative exceeded the projected 962,106 valid signatures needed to qualify through random sampling and is expected to be formally certified June 25 unless proponents withdraw it before then.
Supporters, led by SEIU-United Healthcare Workers West and backed by independent Vermont Sen. Bernie Sanders, contend the measure would generate tens of billions of dollars to offset healthcare funding pressures and support education and food assistance programs.
Under the proposal, 90% of revenues would be directed toward healthcare initiatives and 10% toward education and food assistance programs.
The Legislative Analyst's Office has estimated the tax could raise tens of billions of dollars over several years.
Supporters have projected the measure could ultimately generate as much as $100 billion.
The proposal has also triggered fierce opposition from Democrat Gov. Gavin Newsom, business groups, and prominent Silicon Valley billionaires who argue it would damage California's economy and accelerate the departure of wealthy residents and employers.
According to a Los Angeles Times report, several technology executives and billionaires have already purchased or explored properties in Florida amid concerns about the proposed tax.
The report cited high-profile moves and investments by figures including Sergey Brin, Larry Page, Jeff Bezos, Larry Ellison, and others as evidence of growing interest in lower-tax states.
Critics warn that California's reliance on high-income taxpayers makes the state particularly vulnerable to an exodus of wealthy residents.
The Hoover Institution has estimated the proposal could ultimately reduce state income tax revenues by billions of dollars if taxpayers relocate
CalMatters noted that the initiative has become the centerpiece of a broader political fight over taxation and public spending in California.
The measure has also divided organized labor, with some unions supporting the proposal while others have aligned with Newsom's effort to keep it off the ballot.
Despite qualifying, the proposal's future remains uncertain.
Politico reported that supporters could still withdraw the initiative as part of a negotiated compromise with lawmakers before a late-June deadline.
If it remains on the ballot, voters will decide whether California becomes the first state in the nation to impose a direct tax on billionaire wealth, a move likely to have national political and economic implications.