California voters are set to decide on a one-time 5% tax on the net worth of the state’s billionaires in November. The secretary of state reported on June 17 that at least 980,438 of the more than 1.6 million signatures filed were valid, qualifying the ballot initiative.
The SEIU-UHW is sponsoring the initiative. The tax would be retroactive and apply to any billionaire residing in the state as of Jan. 1, 2026. The tax would be due with an individual's 2027 tax filings. The initiative would allow individuals to pay the tax in five equal installments beginning in 2027, with each subsequent payment subject to an annual deferral charge of 7.5% of the remaining unpaid balance.
The initiative would create the 2026 Billionaire Tax Reserve Fund, where all taxes, interest, and penalties resulting from the initiative would be deposited. The initiative would fund reductions in federal spending or state appropriations; Medi-Cal and other health coverage programs for low- and moderate-income individuals; health care access, benefits, and services; public education from K-14; and food assistance programs such as CalFresh, CalFAP, CalFood, or California's Universal Meals Program for school meals.
