A proposed ballot measure would impose a one-time 5% wealth tax on California residents worth more than $1 billion, with payments beginning in 2027 and spread over five years. Josh Altman, one of the country's most recognized luxury real estate brokers, told Fox Business that seven billionaires he personally knows have already relocated in anticipation of the measure. With organizers currently gathering the roughly 900,000 signatures needed to place the initiative on the November ballot, the conversation around California's tax climate and its impact on the luxury market is intensifying rapidly.
- California is home to an estimated 200 to 250 billionaires, more than any other state, but Altman warns that current tax proposals are accelerating a relocation trend among the state's wealthiest residents
- The proposed measure would require billionaires to pay a one-time 5% levy spread over five years beginning in 2027, and would need voter approval to become law
- Altman cautioned that billionaires represent a tiny fraction of California's 23 million eligible voters, making a favorable ballot outcome unlikely for the ultra-wealthy if the measure qualifies
- Beyond the billionaires themselves, Altman stressed that the real economic risk lies in the trickle-down effect, pointing to hundreds of thousands of jobs and trillions in tax revenue that could be lost if major wealth holders continue leaving the state
Whether the measure reaches the ballot or not, the conversation it has ignited is already influencing decisions at the very top of California's luxury real estate market. For high net worth buyers, sellers, and investors, the next few months will be worth watching closely.
By: Casey B. Renner | Yahoo Finance | February 23, 2026
