California billionaire wealth tax could affect more than 200 residents

The proposed Billionaire Tax Act would impose a one-time 5% tax on assets of California residents worth over $1 billion; if organizers gather enough signatures it would appear on the November ballot and, if approved, apply retroactively to residents as of Jan. 1.

California is weighing the Billionaire Tax Act, a proposed one-time wealth tax aimed at residents with more than $1 billion in assets. The measure calls for a 5% charge on those assets and would apply retroactively to residents as of January 1 if voters approve it. Organizers must collect enough valid signatures for the measure to qualify for the November ballot. The tax would be due in 2027, with an option to spread payments over five years with interest. Key facts: - The proposal would levy a one-time 5% tax on assets of California residents with net worths above $1 billion. - If signature thresholds are met, the measure would appear on the November ballot and, if passed, apply retroactively to residents as of Jan. 1. - Business Insider reported that Google cofounders Larry Page and Sergey Brin moved some business entities out of California ahead of the filing deadline. - As of Jan. 1, there were 214 billionaires in California, according to Forbes data compiled by Americans for Tax Fairness. Summary: The measure would impose a one-time 5% asset charge on billionaires and could take effect retroactively if voters approve it after it qualifies for the ballot. Some wealthy individuals and entities have made changes to residency or business structures ahead of the deadline, and the tax would be payable beginning in 2027 with a multi-year payment option and interest. The initiative's progression depends on signature verification and whether it qualifies for placement on the November ballot.