California voters reject billionaire tax

California voters have struck down Proposition 40, the billionaire tax, instead voting to ban new state taxes.

At 6:28 p.m. on Nov. 9, the Associated Press predicted Prop. 40 would fail with 86% of the vote counted. At the same time, one countermeasure to the wealth tax, Prop. 41, had already failed and the other, Prop. 42, had yet to be called.

The revenue from the wealth tax would have totaled around $100 billion over five years, with 90% allocated to health care and 10% to public education and food assistance. The measure was backed by SEIU-United Healthcare Workers West.

Since two competing measures were introduced, whichever proposition received the most votes would be the one to be implemented.

Prop. 41 failed on Nov. 7; at the time of publication, it had an almost 55% “no” vote with 86% of ballots counted. It would have canceled any new state taxes passed after Jan. 1, 2026, instead counting the revenue toward the state spending limit. 

If it passes, Proposition 42 will ban new taxes on personal property, including investment accounts like 401(k)s and prohibit retroactive taxes on those items.

Prop. 42 is still too close to be called; at the time of publication, the proposition was at a 51.6% “yes” vote with 86% of ballots counted.

Though throughout the year public support for the wealth tax seemed strong, the most recent polling had only 46% saying they would support Proposition 40.

The No on 40 campaign — funded almost entirely by billionaires — vastly outspent Yes on 40, raising nearly $430 million to fight the wealth tax, according to campaign finance data.