Signature Gathering Begins for 2026 Billionaires Tax Act

The Secretary of State has approved the “Billionaires Tax Act” for circulation to obtain signatures to place the initiative on the ballot for the November 2026 election.

​The initiative requires 874,641 signatures to be placed on the ballot. If it qualifies for the ballot and passes it would impose a one-time tax of up to 5% on taxpayers, who are residents as of January 1, 2026, and their trusts with covered assets valued over $1 billion. Covered assets include businesses, securities, art, collectibles, and intellectual property, but does not include real property and some pensions and retirement accounts. The initiative allocates 90% of these tax revenues for health care and 10% for food assistance or education-related programs. The initiative is sponsored by the Service Employees International Union-United Heathece Workers West (SEIU-UHW). 

Some opponents – which notably even include California Governor Gavin Newsom – have theorized that the proposal could drive top earners and venture capitalists out of California, potentially depriving the state of tax revenues and economic investment, and demonstrating why California ranks low in surveys of its business climate. The position has been supported by recent reports of high-net-worth individuals trying to establish residency outside of California before the end of 2025.