California Proposition 40: One-time wealth tax
California · Constitutional amendment and statute · Taxes · Statewide decision
Explanation reviewed 2026-10-27. AI-written and checked against linked official evidence; not an election-office summary.
AI-written summary
Would tax certain taxpayers with covered assets over $1 billion at up to 5%, based on California residency on January 1,2026. Real estate and some pensions and retirement accounts are excluded. Ninety percent of revenue supports health care; the remainder supports food assistance, education and administration, outside specified constitutional budget requirements.
What applies now
California taxes income but does not impose this proposed one-time tax on covered wealth.
If yes / for
Adopt the tax and earmarked spending rules.
If no / against
Do not enact this wealth tax.
Costs and funding
The Legislative Analyst estimates temporary revenue in the tens of billions over several years, possible ongoing income-tax losses below $1 billion annually, and administration costs in the tens of millions annually for several years.
Timing
Tax due in 2027, with an optional five-year payment schedule at additional cost; residency date January 1,2026.
Passage rule
A majority of votes cast on the proposition.
Some official sources do not have comparable automated archives. Consult the linked evidence and its review date.
Source notes
- The official guide says Proposition40 could be blocked if conflicting Proposition41 or42 passes with more yes votes; courts may need to resolve the conflict.