Voters Decide Prop. 40 Billionaire Tax After $316.7M Campaign War

SAN RAMON & SACRAMENTO, Calif. — Voters across San Ramon and California are deciding 14 statewide ballot propositions on Tuesday, November 3, headlined by the most expensive initiative clash of the 2026 election cycle: Proposition 40, a proposed one-time 5% wealth tax on California billionaires, and 2 competing business-backed counter-measures (Propositions 41 and 42).

Proposition 40 vs. Propositions 41 and 42: The $316.7 Million Billionaire Tax Showdown

As reported by CBS Sacramento and Patch Dublin, Proposition 40 is a labor union-sponsored initiative that would levy a one-time state tax of up to 5% on California residents holding net assets exceeding $1 billion (excluding direct real estate holdings and certain qualified pension or retirement accounts). State analysts estimate the tax would apply to approximately 200 California billionaires, with revenues dedicated to health care, food assistance, and public education programs.

Opponents of Proposition 40 have spent $316.7 million across the 3 related tax measures—including $102 million contributed by Google co-founder Sergey Brin—both to defeat Proposition 40 and to pass 2 constitutional counter-initiatives designed to nullify it:

• Proposition 41: Prohibits new state taxes that exclude revenues from the state's 1979 constitutional spending limit and mandates independent audits for new special taxes.
• Proposition 42: Prohibits the state from levying new personal property or wealth taxes on business interests, intellectual property, or financial and investment accounts.

Housing Bonds, Medical Research, Tax Rules, and CEQA Reform Across California's Ballot

According to Patch Dublin, voters are also deciding 8 additional fiscal, housing, healthcare, and environmental propositions on Tuesday:

• Proposition 1 ($11.25 Billion Housing Bond): Authorizes $10 billion in general obligation bonds for affordable rental and homeownership programs and $1.25 billion for veterans' home purchase assistance, projected to help build 40,000 new homes and help 40,000 residents become homeowners.
• Proposition 37 ($25 Billion Middle-Income Down-Payment Bond): Authorizes up to $25 billion in bonds to provide loans covering up to 17% of a home's purchase price toward a standard 20% down payment for buyers earning up to 2 times the Area Median Income.
• Proposition 38 ($8.4 Billion Immunology Research Bond): Authorizes $8.4 billion in bonds for immunology and immunotherapy research (50% to the University of California and 50% to public and nonprofit California research institutes), requiring resulting therapies to be offered to Californians at a 20% discount while returning 10% of licensing revenue to the state.
• Propositions 3, 4, 43, 44 & 45: Proposition 3 makes the progressive high-earner income tax brackets first approved under 2012's Proposition 30 and extended under 2016's Proposition 55 (currently set to expire in 2031) permanent; Proposition 4 repeals the 1988 ban on public financing of political campaigns; Proposition 43 raises the voter threshold for citizen-initiated local special taxes to a two-thirds supermajority; Proposition 44 (Clinic Funding Accountability and Transparency Act) requires covered nonprofit community clinics to spend at least 90% of annual revenue on care-oriented program services (using an illustrative $82 million out of $100 million example carrying an $8 million penalty refundable if compliance is restored within 5 years); and Proposition 45 sets statutory time limits on California Environmental Quality Act (CEQA) reviews for housing, transportation, and water projects.