Proposition 40 Targets Billion-Dollar Assets

The November 3 ballot measure could impose a one-time 5% tax on assets exceeding $1 billion for California residents.

Updated on Oct. 28, 2026 in Financial Planning

Proposition 40 Targets Billion-Dollar Assets

Live Poll

Should states impose additional taxes on high-value assets to fund health and education programs?

California voters head to the polls on November 3, 2026, to decide on Proposition 40, which proposes a one-time 5% tax on assets exceeding $1 billion. While a recent survey of likely voters showed 52% support for the measure, a separate survey of tax researchers indicates strong opposition among economists and accountants.

Why it matters

The proposal introduces a significant tax threshold for high-net-worth individuals that could shift state fiscal priorities toward health care, food assistance, and education. Residents planning their long-term financial structure should note the January 1, 2026, residency date used for determining eligibility under the measure.

A survey of 105 tax researchers found that 69.5% oppose Proposition 40, contrasting with 52% support among a group of 1,103 likely voters. The proposal targets a one-time 5% tax on assets valued above $1 billion, with 90% of revenue earmarked for health care and 10% for food or education.

The players

California voters

Residents of the state who will cast ballots on November 3, 2026, to determine the future of state tax policies.

The details

If passed, Proposition 40 would apply a one-time 5% tax to assets valued over $1 billion for qualifying California residents. The measure outlines that 90% of the funds generated would be allocated to health care programs, while the remaining 10% would support food assistance or education. Because the tax relies on asset valuation, taxpayers must determine how their holdings are classified relative to the state's residency criteria effective January 1, 2026.

January 1, 2026: Residency date for Proposition 40 asset tax eligibility.
September 4-10, 2026: Public opinion survey of California likely voters.
October 13, 2026: Researcher survey responses received by organizer.
November 3, 2026: California voters decide on Proposition 40.

Money Landscape

Proposition 40 follows an established trend of state-level ballot initiatives aimed at raising revenue through targeted levies on high-net-worth assets. This development marks a distinct shift from existing tax structures by proposing a one-time surcharge focused on billion-dollar asset benchmarks.

High-net-worth households in California should review their asset structures in light of the January 1, 2026, residency cutoff. Speak with a qualified tax professional to evaluate how a potential 5% one-time tax on assets above $1 billion might influence your personal financial planning.

The takeaway

Proposition 40 introduces a high-stakes tax proposal that could significantly redirect California state funding toward health and education. Voters should monitor the outcome of the November 3, 2026, election to understand how state tax obligations may change for specific high-value asset holders.