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California Voters Reject Proposition 40, the One-Time Billionaire Tax, 52.8% to 47.2%
By Eleanor Ever Loyal
California voters rejected Proposition 40, a proposed one-time tax on the wealth of the state’s billionaires, with 52.8% voting no and 47.2% voting yes, according to results called by the Associated Press on Monday, November 9. The measure’s defeat blocks an effort to impose a first-of-its-kind state tax on the net worth of California residents worth more than $1 billion.
The result came two days after the 2026 midterm elections, a cycle otherwise marked by Democratic victories. Proposition 40 had become a major test of whether California voters would support a direct tax on extreme wealth to help replace federal health-care funding reductions and support other public services.
The AP called the result with approximately 83% of ballots counted. The figures remain unofficial until California certifies the election results, scheduled for December 11.
Proposition 40 would have imposed a one-time tax of 5% on the net worth of California residents whose wealth exceeded $1 billion. The tax applied to people who were California residents on January 1, 2026, and was expected to cover approximately 200 billionaires.
The measure was placed on the ballot by the health care workers’ union SEIU-United Healthcare Workers West. Its supporters estimated that the tax would generate roughly $100 billion. Most of the proceeds were intended to replace federal health-care funding cuts, with 10% designated for education and food assistance.
Supporters argued that the state needed a new source of revenue to protect health-care services and other programs facing pressure from federal funding reductions. The campaign attracted backing from progressive political figures, including Sen. Bernie Sanders, who supported the proposal as part of a broader effort to increase taxes on the wealthiest Americans.
But the proposal divided California Democrats. Gov. Gavin Newsom opposed the measure, warning that a wealth tax could encourage billionaires to leave California and ultimately reduce state revenue. Governor-elect Xavier Becerra also opposed it. Their position reflected concerns that a one-time tax on accumulated wealth could affect the state’s tax base, investment and economic activity beyond the immediate revenue it might generate.
The campaign was also defined by a substantial disparity in spending.
Opponents spent approximately $378 million against Proposition 40, according to CalMatters’ tally of campaign finances. Google co-founder Sergey Brin contributed $102 million to the opposition effort. The Yes campaign raised approximately $33.5 million, a fraction of the amount spent by opponents.
The scale of the spending made the proposal one of the most expensive ballot fights in the state. It also placed California’s technology and business interests at the center of a debate over whether the state should use a one-time levy on billionaire wealth to address public funding needs.
Opponents argued that the tax could prompt wealthy residents to relocate, potentially reducing future income-tax collections and weakening the state’s ability to finance public services. Newsom was among the prominent Democrats who warned that the measure could have consequences beyond the billionaires directly subject to the tax.
For supporters, the central issue was the allocation of wealth and the state’s responsibility to respond to health-care funding pressures. SEIU-UHW argued that the revenue would help replace federal cuts and preserve services. The union’s proposal was not structured as a recurring annual tax: it was a one-time assessment on the qualifying residents’ net worth.
The defeat leaves the state’s debate over how to respond to federal health-care funding reductions unresolved. The measure’s backers had presented the proposed tax as a way to direct substantial new revenue toward health care, education and food assistance. Voters rejected that particular approach, while the result does not itself determine what other state or federal funding measures may be pursued.
The outcome also illustrates the political divisions surrounding wealth taxation in California. The proposal had support from labor advocates and progressive figures, while prominent Democratic officeholders, business interests and wealthy residents opposed it. The spending disparity was pronounced, but the final vote establishes the result: a majority of participating voters rejected the measure.
Proposition 40 will not take effect. Its defeat means California will not impose the proposed one-time 5% tax on the roughly 200 billionaires who would have been covered by its residency and wealth provisions.
The vote was called Monday, but the official result remains subject to certification by the state on December 11.
Reporting based on Associated Press and CalMatters dispatches.
— Eleanor Ever Loyal, National Desk
Eleanor Ever Loyal is The Library Media’s regulation and governance correspondent.
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