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California · November 3, 2026 general election · Statewide ballot measure

Proposition 40: what your vote means

One-time tax on billionaires. On every California ballot. Official sources checked October 21, 2026.

Proposition 40 · Initiative constitutional amendment and statute

One-time tax on billionaires

Official ballot title (quoted exactly)

IMPOSES ONE-TIME TAX ON CERTAIN TAXPAYERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

As printed in the Official Voter Information Guide, California Secretary of State (title prepared by the Attorney General).

A YES vote means:

Billionaires who lived in California on January 1, 2026 would pay a one-time state tax equal to 5% of their net worth, due in 2027 (payable over five years at extra cost).

A NO vote means:

The state would not collect this one-time tax.

What it would change

  • Who is affected: California residents with net worth over $1 billion; real estate, pensions, and retirement accounts are generally excluded.
  • Where the money goes: 90% to health care services; the rest to education, food assistance, and administering the tax.
  • Other changes: the revenue would be exempt from the state spending limit and the minimum school funding requirement.
  • Fiscal impact (Legislative Analyst): a temporary increase of tens of billions of dollars over several years, and a possible ongoing decrease of less than $1 billion a year in income tax revenue.

Official arguments, summarized

Short neutral summaries of the arguments printed in the official voters’ pamphlet. The committees that wrote them are responsible for their content. Read the full text at the link below.

Argument for

Supporters say billionaires should pay more to offset federal health care cuts.

Argument against

Opponents say the tax would harm the economy and state budget and would not lower health care costs.

Arguments and rebuttals, Proposition 40, Official Voter Information Guide

Who supports it and who opposes it

These lists come from official campaign filings (registered committees) and public endorsements, each linked to its source. They are not complete, and SaveYourState does not endorse anyone listed. Lists checked October 30, 2026.

Who supports it

Who opposes it

Official sources

SaveYourState is independent and nonpartisan, not a government site, and does not take positions on ballot measures. This explainer describes effects only, using the official ballot title, explanatory statement, full text, and fiscal impact statement. If anything here differs from those documents, the official documents control.