Voter-Backed California Tax Measure Advances to November Ballot

A proposed one-time 5% tax on the net worth of Californians whose assets exceed $1 billion will appear on the November ballot after the measure cleared the June 25 filing deadline. The initiative, sponsored by the Service Employees International Union – United Healthcare Workers West under the name Billionaire Tax Now, was added to the ballot on Thursday.

The tax would apply to individuals who were California residents on January 1, 2026, even if they have since relocated. Advisors to the ultrawealthy said several clients completed moves out of the state before that date to limit exposure.

The ballot measure is expected to draw a costly campaign and subsequent legal challenges if approved. Attorneys cited potential arguments over due process, retroactive application, and taxation of unrealized gains tied to private-company holdings. Some left-leaning groups that generally favor higher taxes on the wealthy have questioned whether the measure offers a sustainable long-term solution.

Gov. Gavin Newsom, who has long opposed the tax, advocated instead for a federal wealth tax that would be harder for individuals to avoid by leaving the state.