Billionaires flee California as 5% wealth tax ballot measure looms

"Billionaires are leaving California in droves in the face of a ballot initiative seeking to place a 5 percent tax on their wealth. At least six dozen billionaires left the Golden State before the new year and more than a dozen others could follow suit, Bloomberg reported, citing financial advisers working for the affluent. If approved by voters this November, any billionaire living in the state as of Jan. 1, 2026 would be eligible for the one-time 5 percent tax on fortunes exceeding $1 billion."

"On Dec. 31, Peter Thiel and David Sacks both publicly announced new office locations in Florida and Texas, respectively, following the relocation of four other billionaires ahead of the new year. Financial adviser David Lesperance told Bloomberg that he helped four billionaires leave the state ahead of the Jan. 1 residency cut-off date; Iconiq Capital founder Divesh Makan knows a handful of other families that have already departed and expects another 15 to 20 to flee if the tax is approved, Makan told Bloomberg."

"Last month, Google co-founder Larry Page bought roughly $173 million of waterfront real estate in Miami, including one $100 million estate and another one nearby for $72 million, per the Wall Street Journal. In the last probably month or so, I've had multiple billionaires from California come to see several different listings that I have, Devin Kay, a Miami-based agent with Douglas Elliman, told the Post."

A proposed one-time 5 percent tax would apply to fortunes exceeding $1 billion for anyone residing in California as of Jan. 1, 2026. At least six dozen billionaires left the state before the residency cut-off, and advisers expect more departures if voters approve the measure. High-profile relocations include new offices announced by Peter Thiel and David Sacks and a large Miami real estate purchase by Larry Page. Financial advisers and real estate agents reported helping clients move and seeing increased interest from tech founders. The initiative must collect hundreds of thousands of signatures to reach the November ballot and then win majority voter approval.

Read at therealdeal.com