California voters to decide on wealth tax measure
California voters will soon decide on Proposition 40, a ballot measure that would impose a one-time tax of 5% on assets for residents whose wealth exceeds $1 billion. The union backing the measure says it could raise $100 billion in revenue. Fortune reports the vote is approaching, with no result yet. The state already has the most progressive income-tax structure in the country, with a top marginal rate of 13.3%, and the top 1% of earners account for up to half of state revenue.
Key facts
- Proposition 13, approved by voters in 1978, capped property taxes at 1% of assessed value.
- Proposition 13 also limited annual property tax increases to 2%.
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Why it matters
The measure would test how California raises revenue from its highest-wealth residents and could shape state finances.
What changed
First published from Fortune