California Votes Tuesday on 5% Billionaire Tax as Support Slips

California voters will decide on Tuesday whether to approve a first-of-its-kind state tax on billionaires, Reuters reported on Sunday, in a test of how far the nation’s most populous state is willing to go in taxing its wealthiest residents.

Proposition 40 would impose a one-time tax equal to 5% of the net worth of billionaires who were California residents on Jan. 1, 2026, according to the state’s nonpartisan Legislative Analyst’s Office. The tax would be due in 2027, and taxpayers could spread payments over five years but would pay more to do so, the analyst’s office said.

California voters will decide whether to approve a first-of-its-kind state tax on billionaires, testing public support for a measure aimed at raising revenue from the state's wealthiest residents pic.twitter.com/mxGPPzwTo5

— Reuters (@Reuters) November 1, 2026

What the measure would do

Real estate, pensions and retirement accounts would generally be excluded from the tax, according to the Legislative Analyst’s Office. Ninety percent of the money would have to be spent on health care services, with the rest going to education, food assistance and administering the tax, the office said.

The analyst’s office also noted that existing rules in the State Constitution that limit state spending and require minimum funding for schools and community colleges would not apply to the new money.

The state’s official voter guide estimates a temporary revenue increase of “tens of billions of dollars spread over several years,” along with a “possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires,” according to the California Secretary of State.

Who is for it and who is against it

The official voter guide lists Sen. Bernie Sanders and SEIU United Healthcare Workers West among the supporters. Supporters argue in the guide that “it’s time to make billionaires pay their fair share.”

The opposition is broad. The voter guide lists the California Primary Care Association, the California School Boards Association and the California Taxpayers Association as opponents. The opposing argument in the guide calls Prop. 40 “a flawed, one-time tax scheme that hurts our economy, damages our state budget, and contains a loophole exposing all Californians to taxes we can’t afford,” and says it “does nothing to lower healthcare costs.” That argument lists the California Teachers Association, the California Medical Association and California Professional Firefighters as opponents, along with “Democrats and Republicans.”

Support appears to be slipping

Polling has turned against the measure in the final stretch. A Public Policy Institute of California survey found 52% of likely voters opposed Prop. 40 and 46% supported it, the San Francisco Standard reported. A UC Berkeley Institute of Governmental Studies poll found 50% of likely voters opposed and 42% in favor, KQED reported.

That is a reversal from September, when 52% of likely voters surveyed by the institute backed the measure, according to the San Francisco Standard. KQED reported that the Berkeley poll had found 45% support and 42% opposition just a month earlier. The Los Angeles Times reported on Oct. 29 that support for the wealth tax was dwindling.

Polls in California are open from 7 a.m. to 8 p.m. on Tuesday, according to the Secretary of State’s voter guide.

Sources

• Reuters on X
• California Legislative Analyst’s Office: Proposition 40
• California Secretary of State: Official Voter Information Guide, Proposition 40
• San Francisco Standard: Poll: Support for California’s billionaire tax slips
• KQED: Is California’s proposed billionaire tax in trouble?
• Los Angeles Times: Support dwindles for wealth tax

Reporting by Daily Beltway.