The state estimates tax revenues could climb into the tens of billions of dollars over several years.<\/p>\n
SACRAMENTO, Calif. (CN) \u2014 A one-time 5% tax on California billionaires has qualified for the November ballot after supporters submitted enough valid signatures to place the measure before voters.<\/p>\n
The 2026 Billionaire Tax Act needed roughly 875,000 valid signatures to qualify. A random sample projected the measure had at least 962,000 valid signatures, more than 110% of the required total, making it eligible for the ballot.<\/p>\n
The deadline for initiatives to qualify for the Nov. 3 election is June 25, when the secretary of state is expected to formally certify the measure unless supporters withdraw it.<\/p>\n
The measure would impose a one-time 5% tax on taxpayers and trusts with assets exceeding $1 billion. Taxable assets would include businesses, securities, artwork and intellectual property, but not real estate, certain pensions or retirement accounts.<\/p>\n
90% of revenue generated by the tax would go toward health care programs, while the remaining 10% would fund food assistance and education programs.<\/p>\n
State analysts estimate the measure could generate tens of billions of dollars over several years.<\/p>\n
Governor Gavin Newsom opposes the measure. It is backed by Service Employees International Union-United Healthcare Workers.<\/p>\n
A representative for the union could not immediately be reached for comment.<\/p>\n
\u201cCalifornia\u2019s health care safety net is under extraordinary threat, as Medi-Cal \u2014 the backbone of coverage for nearly 15 million low-income Californians, including more than half of the state\u2019s children, 2.2 million seniors and people with disabilities, and one in five of all working adults \u2014 faces billions in federal funding cuts which will only exacerbate existing challenges,\u201d proponent Suzanne Jimenez of SEIU-UHW wrote in the initiative.<\/p>\n
Supporters argue California\u2019s health care and education programs face mounting financial pressure from proposed federal spending cuts. In the initiative, Jimenez also cited proposed reductions in public school funding that could disproportionately affect rural and disadvantaged students.<\/p>\n
Jimenez wrote that California\u2019s approximately 200 billionaires collectively hold about $2 trillion in wealth and argued a one-time 5% tax would slow, but not halt, the growth of those fortunes.<\/p>\n
State Senator Tony Strickland, a Huntington Beach Republican, told Courthouse News that he and Newsom rarely agree on anything. However, both oppose the billionaire tax.<\/p>\n
\u201cIf this passes, we will have a crater in our budget,\u201d Strickland said, adding: \u201cIt\u2019s not a well-thought out proposal.\u201d<\/p>\n
Strickland said the state\u2019s coffers rely heavily on capital gains. The billionaire tax will lead high-earners to leave the state, resulting in funding losses to essential services like healthcare and transportation.<\/p>\n
\u201cThese are the types of proposals that drive folks away,\u201d he added.<\/p>\n
Several other measures also qualified for the November ballot this week.<\/p>\n
One would limit the amount attorneys can collect in motor vehicle accident cases. Under the proposal, plaintiffs would retain at least 75% of settlement proceeds, while standards for proving certain medical expenses would become more stringent.<\/p>\n
State analysts estimated the measure could save trial courts millions annually, though Medi-Cal costs could increase by millions to tens of millions each year because of reduced compensation available to offset program expenses.<\/p>\n
Another measure would expand rideshare companies\u2019 liability for sexual misconduct involving drivers or riders. It also would require companies to issue monthly reports detailing incidents of sexual misconduct and notify riders about risks associated with drivers.<\/p>\n
State analysts said the measure could increase court caseloads, resulting in millions of dollars in additional costs.<\/p>\n
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