California Proposition 40 Wealth Tax Qualifies for November Ballot

California's Proposition 40, known as the 2026 Billionaire Tax Act, has qualified for the November 3, 2026, ballot. If approved, the measure would implement a one-time tax of up to 5% on the net worth of residents possessing at least $1 billion as of December 31, 2026. The act targets specific trust structures and prohibits certain valuation discounts for private businesses, with revenue split between state healthcare (90%) and food assistance programs (10%).

Governor Gavin Newsom and gubernatorial candidate Xavier Becerra oppose the measure, arguing that wealth taxes are best handled at the federal level. The Service Employees International Union-United Healthcare Workers West is the official proponent of the tax, which has also received an endorsement from the California Democratic Party following a vote by its executive board.

Opponents, including business groups, warn that the tax could drive investment and wealthy residents out of the state. Supporters contend that the revenue is necessary to prevent critical service failures in healthcare and food assistance.