California voters will likely be voting on a slate of competing tax measures in November. The secretary of state reported that two ballot initiatives designed to challenge provisions of the proposed billionaires’ tax initiative qualified for the ballot on June 24. The initiatives are constitutional amendments that would:
- prohibit the enactment of new taxes after Jan. 1, 2026, on the ownership or control of retirement holdings, individually owned assets, and other forms of personal savings; prohibit retroactive taxes that impose liability based on conduct, activities, or a status that occurred or existed before the tax took effect; and
- require state laws or ballot initiatives enacted after Jan. 1, 2026, that impose new special taxes—taxes levied for specific purposes—to undergo state audits evaluating program effectiveness and potential cost savings; and prohibit the state from enforcing any tax enacted or taking effect on or after Jan. 1, 2026, that is exempt from or excluded from the state spending limit.
The billionaires' tax is sponsored by SEIU-UHW and qualified for the ballot on June 17. The initiative would enact a one-time tax of 5% on an individual's net worth exceeding $1 billion. The tax would be retroactive and apply to any billionaire residing in the state as of January 1, 2026. Revenue from the tax 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.
