Supporters of a proposed one-time 5% tax on Californians with net worth above $1.1 billion say they collected more than 1.5 million signatures and will submit them for verification. If at least 875,000 signatures are validated, the measure would appear on the November ballot. The proposal directs nearly all revenue to healthcare, applies retroactively to residents as of Jan. 1, 2026, and has sharply divided California Democrats.
California May Vote on 'Billionaire Tax' After Backers Submit 1.5M Signatures
Attendees cheer during a campaign kickoff for the California Billionaire Tax Act in Los Angeles on Feb. 18. (Patrick T. Fallon / AFP via Getty Images file)(Patrick T. Fallon)
Supporters of a proposed one-time tax on the state’s wealthiest residents moved a step closer to the November ballot after the labor union behind the measure said it would submit more than 1.5 million petition signatures to state election officials.
The initiative would impose a one-time, 5% tax on the assets of California residents with a net worth above $1.1 billion and direct nearly all of the revenue to healthcare programs. It would also create a smaller tax tier for those with net worth between $1 billion and $1.1 billion. The proposal would apply retroactively to anyone who is a California resident as of Jan. 1, 2026.
Representatives of SEIU United Healthcare Workers West, the union that drafted the measure, said they collected roughly 1.5 million signatures — nearly double the number of valid signatures needed — and planned to submit the petitions to state officials immediately. State election authorities will now verify the petitions; if at least 875,000 are validated, the measure would qualify for the November ballot.
“Ultra-wealthy billionaires have seen their fortunes skyrocket even as food, rent and gas increasingly crush working families who are struggling to stay afloat,” said Mayra Castañeda, a member of SEIU United Healthcare Workers West. “When hospitals are cutting services, clinics are closing and families face losing coverage, those who have prospered in California can afford to invest a little more in keeping California running.”
What Supporters and Opponents Say
Backers argue the tax would generate revenue needed to plug looming state budget gaps and shore up healthcare as federal and state policy changes threaten funding for Medicaid and other health programs. Opponents counter that the surtax could prompt wealthy residents, investors and tech leaders to leave California, worsening economic and fiscal pressures.
Political Impact
The proposal has sharply divided California Democrats. Gov. Gavin Newsom has opposed the measure and blocked related legislation in the past, while Rep. Ro Khanna (D-Calif.) has endorsed it. The debate has also influenced the race to succeed Newsom: former Rep. Katie Porter and former HHS Secretary Xavier Becerra oppose the tax, while billionaire activist Tom Steyer supports it.
If the signatures are verified and the measure qualifies for the ballot, voters will decide in November whether to approve the one-time tax and its healthcare spending provisions. The verification process and potential legal and political challenges could affect the timeline before election day.
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