California One-Time Wealth Tax for State-Funded Healthcare, Education, and Food Assistance Programs Initiative
California Ballot Measure -
Election: Nov. 3, 2026 (General)
Outcome: Pending
Categories:
Health and Health CareTaxes
Summary
The initiative would enact a one-time tax of 5% on an individual's net worth exceeding $1 billion. The tax would be retroactive and apply to any billionaire residing in the state as of January 1, 2026. The tax would be due with an individual's 2027 tax filings. The initiative would allow individuals to pay the tax in five equal installments beginning in 2027, with each subsequent payment subject to an annual deferral charge of 7.5% of the remaining unpaid balance.[1]
The initiative would create the 2026 Billionaire Tax Reserve Fund, where all taxes, interest, and penalties resulting from the initiative would be deposited. The initiative would fund reductions in federal spending or state appropriations; Medi-Cal and other health coverage programs for low- and moderate-income individuals; health care access, benefits, and services; public education from K-14; and food assistance programs such as CalFresh, CalFAP, CalFood, or California's Universal Meals Program for school meals.
A "yes" vote supports this initiative to levy a one-time 5% tax on the accumulated wealth, including shares of capital stock, bonds or other evidences of indebtedness, and any legal or equitable interest, of billionaires in the state to fund state-funded health care programs, such as Medi-Cal, and state food assistance and public education.
A "no" vote opposes this initiative to levy a one-time 5% tax on the accumulated wealth, including shares of capital stock, bonds or other evidences of indebtedness, and any legal or equitable interest, of billionaires in the state to fund state-funded health care programs, such as Medi-Cal, and state food assistance and public education.
Measure Text
Sec. 37.
(a) This Section authorizes and enables a one-time tax on the accumulated wealth of California billionaires, imposed on those individuals who are California residents within the meaning of Sections 17014 and 17015.5 of the Revenue and Taxation Code as of the tax obligation date as defined in the 2026 Billionaire Tax Act.
(b) The following definitions apply to this Section:
(1) "Act" refers to the 2026 Billionaire Tax Act.
(2) "Reserve Fund" refers to the 2026 Billionaire Tax Reserve Fund, created by this Act.
(c) Notwithstanding any other provision of the Constitution, the Act provides for taxation on all forms of personal property and wealth, whether tangible or intangible, and allows for the classification of personal property and wealth for differential taxation or for exemption, for the purpose of imposing the one-time tax on the wealth of California billionaires. Personal property and wealth that is so taxed includes, but is not limited to, shares of capital stock, bonds or other evidences of indebtedness, and any legal or equitable interest therein.
(d) The 2026 Billionaire Tax Reserve Fund is hereby created in the State Treasury. All revenues from the Actincluding taxes, interest, and penalties, and less refundsshall be deposited in the State Treasury by the State Controller to the credit of the Reserve Fund. After accounting for administrative expenses as provided by law, the Controller shall allocate and transfer the remaining moneys in the Reserve Fund to the following sub-accounts, which are hereby created: 90% to the Billionaire Tax Health Account and 10% to the Billionaire Tax Education and Food Assistance Account. The moneys in the Billionaire Tax Health Account and the Billionaire Tax Education and Food Assistance Account shall be allocated as provided by law.
(e) Notwithstanding any other law, the Reserve Fund is a special fund, permanently separate and apart from the General Fund or any other state fund or account. The taxes and the moneys resulting from the Act shall not be considered to be part of the General Fund, as that term is used in Chapter 1 (commencing with Section 16300) of Part 2 of Division 4 of Title 2 of the Government Code; and shall not be considered "General Fund revenues," "state revenues," "moneys," or "proceeds of taxes" under Section 8 of Article XIIIB for the purposes of any section of Article XIIIB, or Sections 8 or 8.5 of Article XVI. Any revenue raised through the Act shall also not be considered "personal income taxes paid on net capital gains" for purposes of Section 20 of Article XVI. The taxes levied by this Act are not "ad valorem taxes on real property" for purposes of Section 1 of Article XIIIA. To the extent any provision of Article XIIIA would otherwise be construed to limit, restrict, or apply to the rate, base, valuation, or imposition of the tax authorized by this Section, that provision shall not apply to, and is superseded by, this Section. Notwithstanding Section 16305.7 of the Government Code, any interest or dividends earned on moneys in the Reserve Fund shall be retained in the Reserve Fund and used solely for the specific purposes set forth in this subdivision and as provided by the Act.
(f) "Appropriations subject to limitation" of each entity of government and the state under Article XIIIB shall not include appropriations of revenue from the Reserve Fund. No adjustment in the appropriations limit of any entity of government shall be required pursuant to Section 3 of Article XIIIB as a result of revenue being deposited in or appropriated from the Reserve Fund.
(g) Except as provided in Sections 16310 and 16381 of the Government Code as those sections read on January 1, 2025, and except as otherwise provided in this Act, moneys in the Reserve Fund shall not be borrowed, loaned, or otherwise transferred to the General Fund or any other state or local fund or account. Moneys deposited into the Reserve Fund shall only be used for the specific purposes provided by law. Action shall not be taken that permanently or temporarily changes the status of the Reserve Fund or borrows, diverts, or appropriates the moneys in the Reserve Fund in a manner inconsistent with this subdivision.
(h) Notwithstanding Section 32 or any other provision of law, a facial challenge to the 2026 Billionaire Tax Act is authorized to be adjudicated through a validation action under Chapter 6 of Part 27 of the Revenue and Taxation Code, Section 50314 without requiring the payment of the tax claimed to be facially invalid. This subdivision is adopted without implication as to current authority or the development of law other than this Act. Nothing in this subdivision limits any taxpayer's right to pay a tax imposed under this Act and seek a refund or judicial review, or to bring any other action that is otherwise authorized by law and not inconsistent with this subdivision.
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