Prop 40 - Imposes One-Time Tax on Certain Taxpayers. Initiative Constitutional Amendment and Statute.

BALLOT LANGUAGE

  • Imposes one-time tax of up to 5% on certain taxpayers with covered assets valued over $1 billion; covered assets include businesses, securities, art, collectibles, and intellectual property, but exclude real property and some pensions and retirement accounts. 

  • Allocates 90% of these tax revenues for health care, 10% for food assistance or education-related programs; prohibits using revenues to replace existing funding for these purposes. 

  • Exempts such tax revenues from constitutional requirements for school funding, budget reserves, and state spending limit. 

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: 

  • Temporary state revenue increase from a new wealth tax on billionaires. These wealth tax revenues probably would add up to tens of billions of dollars spread over several years. 

  • Possible ongoing decrease of less than $1 billion per year in state income tax revenue collected from billionaires. 

ENDORSEMENTS

Yes

Maxine Waters (Liberal)

Christopher Murphy (Liberal)

Bernie Sanders (Liberal)

Our Revolution (Liberal)

California Young Democrats CYD (Liberal)

No

Steve Forbes (Conservative)

Howard Jarvis Taxpayers Association PAC (Conservative)

Equality California (Liberal)

California Teachers Association (Liberal)

Planned Parenthood Affiliates of California (Liberal)

FINANCIAL BACKING

The following information provides insight into the money being spent to pass or defeat the ballot measure.

Yes

CALIFORNIA PROPOSITION 40, ONE-TIME WEALTH TAX FOR STATE-FUNDED HEALTHCARE, EDUCATION, AND FOOD ASSISTANCE PROGRAMS INITIATIVE (2026)

This question is on the ballot in California as a combined initiated constitutional amendment and state statute on November 3, 2026.

Committees formed to SUPPORT the "One-Time Wealth Tax for State-Funded Healthcare, Education, and Food Assistance Programs Initiative (2026)" are:

YES ON 40 - BILLIONAIRE TAX NOW

Selected Contributions TO: "Yes on 40 - Billionaire Tax Now" include:

  • Service Employees International Union - United Healthcare Workers West
  • Hillary Perkins
  • Ross Boucher
  • Alan Davis
  • John O'Farrell
  • Nicole Pesco
  • Betsy Krieger
  • Friends of Chris Murphy
  • Andrew Faulk
  • Patricia Foschi

No

CALIFORNIA PROPOSITION 40, ONE-TIME WEALTH TAX FOR STATE-FUNDED HEALTHCARE, EDUCATION, AND FOOD ASSISTANCE PROGRAMS INITIATIVE (2026)

This question is on the ballot in California as a combined initiated constitutional amendment and state statute on November 3, 2026.

Committees formed to OPPOSE the "One-Time Wealth Tax for State-Funded Healthcare, Education, and Food Assistance Programs Initiative (2026)" are:

GOLDEN STATE PROMISE - NO ON PROP 40

Selected Contributions TO: "Golden State Promise - No on Prop 40" include:

  • Chris Larsen
  • Ripple Labs
  • California Business Roundtable Issues PAC

STOP THE SQUEEZE

Selected Contributions TO: "Stop the Squeeze" include:

  • Daniel Tierney
  • Intersect USA, LLC - Michael Wheeler
  • Ronald Conway

CALIFORNIANS AGAINST TAX INCREASES

Selected Contributions TO: "Californians Against Tax Increases" include:

  • California Business Roundtable Issues PAC
  • California Business Properties Association Issues PAC

NO ON PROP 40 - DOCTORS, TEACHERS, SMALL BUSINESSES, WORKING FAMILIES AND PUBLIC SAFETY AGAINST THE RECKLESS WEALTH TAX EXPERIMENT

Selected Contributions TO: "No on Prop 40 - Doctors, Teachers, Small Businesses, Working Families, and Public Safety Against the Reckless Wealth Tax Experiment" include:

  • Building a Better California
  • California Medical Association
  • California Primary Care Association Advocates

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