June 19, 2026 A proposal to impose a one-time tax on California billionaires has gathered enough signatures to qualify for the state’s November ballot. The measure would levy a 5 per cent tax on California residents with a net worth exceeding $1 billion, setting the stage for a major political battle between labor groups, wealthy technology executives and state leaders.

Known as the California Billionaire Tax Act, the proposal is backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW). Supporters say the tax would help fund healthcare, food assistance and education programs facing financial pressure across the state.

The measure has become one of California’s most closely watched political issues this year. As support for the proposal grew, several prominent billionaires, including Google co-founder Larry Page and Meta co-founder Mark Zuckerberg, reportedly moved to distance themselves from the state, while Governor Gavin Newsom has vowed to oppose the proposal. Although the initiative has qualified for the ballot, the coalition behind it has until June 25 to decide whether to proceed or negotiate an alternative arrangement.

In a letter sent to Newsom, the Billionaire Tax Now Coalition proposed a modified version of the measure that would reduce the tax rate from 5 per cent to 2 per cent. “A 2% one-time tax on that accumulated wealth is modest by any objective measure,” the coalition wrote, arguing that the revenue could help prevent hospital and clinic closures.

Opponents have spent heavily to block the proposal. Google co-founder Sergey Brin has reportedly spent at least $82 million fighting the measure and relocated to the Nevada side of Lake Tahoe. Other opponents include Peter Thiel, Eric Schmidt, Chris Larsen and Tony Xu.

Not all technology leaders oppose the plan. Jensen Huang has publicly said he supports remaining in California despite high taxes. The campaign says it submitted more than 1.55 million signatures, more than double the amount required to qualify for the ballot. Supporters argue the measure reflects growing public demand for wealthy residents to contribute more toward public services.

Political analysts note that negotiations between the union and Newsom could still determine whether voters ultimately see the measure in November. Several organizations, including the California Teachers Association, Planned Parenthood Affiliates of California, and the California Medical Association, have also joined opposition efforts.

The California secretary of state is expected to confirm the measure’s status by the June 25 deadline, after which the proposal could officially move toward a statewide vote.