California’s proposed billionaire tax, Proposition 40, appeared headed for defeat in the latest reported count from the Nov. 3 election. KQED’s AP-powered results page showed 53.9% voting no and 46% voting yes, with an estimated 71.05% of votes counted as of 7:44 p.m. Pacific time on Nov. 6. The result had not been called.
Key Highlights
- With an estimated 71.05% of votes counted, Prop. 40 had 46% yes and 53.9% no in results updated at 7:44 p.m. Pacific time on Nov. 6, according to KQED’s AP-powered results page.
- The result had not been called in the latest results reviewed and remains preliminary.
- Rival measures, Props. 41 and 42, could also block Prop. 40 even if it wins.
- The union behind the tax says it may try again in 2028.
Where the Count Stands
The figures remain preliminary. KQED’s results page notes that the AP estimate of how much of the vote has been counted may fluctuate as election officials report additional results. Late-counted ballots could still affect the margin.
What Prop. 40 Would Do
CalMatters reported the measure would impose a one-time 5% tax on the net worth of the state’s roughly 200 billionaires. It would apply to people who lived in California on Jan. 1, 2026, and cover stocks, bonds, business holdings and other valuable property. Payment could be made in a lump sum or over five years.
Newsweek reported that 90% of the revenue would go to health care and 10% to education, food assistance and tax administration.
Disputed Revenue Estimates
SEIU-UHW, the union that sponsored the measure, estimates about $100 billion over five years. The nonpartisan Legislative Analyst’s Office says “tens of billions of dollars” over several years, according to CalMatters. The office also estimated that billionaires leaving the state could cut income tax revenue by less than $1 billion a year.
Who Backed and Opposed It
Supporters included SEIU-UHW, the California Democratic Party and the California Federation of Labor Unions, CalMatters reported. Sen. Bernie Sanders called it the “most important ballot measure in America,” Newsweek reported.
Gov. Gavin Newsom opposed the tax, along with Planned Parenthood of California and the California Teachers Association, according to CalMatters. Google co-founder Sergey Brin led the opposition and gave $102 million to a committee he founded, Building a Better California. CalMatters said opponents spent $316.7 million against Prop. 40, a figure that includes support for Props. 41 and 42.
The Rival Measures
Prop. 42 bars new taxes on financial assets, private businesses and pensions, and bars retroactive taxes, CalMatters reported. It had 52.6% support in the latest AP-powered results displayed by KQED, updated Nov. 6. Newsom endorsed it. Prop. 41 was trailing, with 54% of voters rejecting it.
Under the state constitution, if either measure receives more votes than Prop. 40, it nullifies the billionaire tax, according to CalMatters and Newsweek, which cited the Legislative Analyst’s Office. Backers of Prop. 42 said it offers “the strongest protections available” for savings. Supporters of Prop. 40 argued the campaign against it was misleading.
What Supporters Say Next
SEIU-UHW leader Dave Regan said, “That’s not a hypothetical. That’s our plan,” and the union vowed to try again in 2028 if the Legislature “fails to deliver a real solution,” CalMatters reported. Lorena Gonzalez, president of the California Labor Federation, said before the results that the measure would likely “come up short,” Newsweek reported.
What to Watch Next
Key questions are the final count and AP’s call. CalMatters reported that California has faced four consecutive deficit years and that Gov.-elect Xavier Becerra is open to new taxes but opposed the billionaire tax. For wider context on the vote, see our midterm elections coverage.
Watch: Coverage of the Prop. 40 Results
Video: “Prop. 40: California billionaire tax headed toward defeat” (YouTube).
Sources
- CalMatters: California election result: Prop 40 billionaire tax appears headed for defeat
- CalMatters: California billionaires faced down a tax and won new protections for their wealth
- ABC7 San Francisco: Live California election results 2026
- Newsweek: California Prop 40 Results: Billionaire Wealth Tax Explained
- KQED: California Proposition 40 live results