California Prop 40 Results: Voters Rejecting the One-Time Billionaire Tax in Early Returns

California voters appear to be turning down Proposition 40, the first-of-its-kind measure that would have imposed a one-time 5% tax on the wealth of the state’s billionaires, according to early, unofficial returns reported Wednesday, Nov. 4.

The ballot count is still going, and the figures have shifted slightly through the day. With about half of the projected votes counted, the Secretary of State showed 55.6% of voters rejecting Prop 40 and 44.4% supporting it, a margin of roughly 860,000 votes, San Jose Inside reported with CalMatters. A later update cited by MyNewsLA.com had the measure at 43.9% yes and 56.1% no, or 3,213,445 votes in favor and 4,098,632 against.

California counts mail ballots for days after Election Day, so totals will keep changing until results are certified.

Did Prop 40 pass?

Based on the returns reported so far, no. Both outlets describe voters as rejecting the measure, though the results are unofficial and counting continues. San Jose Inside called the defeat a sound rejection; MyNewsLA.com said voters “appeared to be rejecting” it.

What is Prop 40?

Prop 40 would have charged a one-time tax on billionaires who were California residents as of Jan. 1, 2026. The key details:

• Rate: 5% of net worth, applied to stocks, bonds, business holdings and other valuable personal property.
• Exclusions: Real estate and some pension and retirement assets were excluded.
• Timing: The tax would have been due in 2027, with an option to spread payments over five years at an additional cost.
• Who pays: Supporters estimated about 200 billionaires would owe the tax.
• Where the money goes: 90% of revenue was reserved for health care, with the rest for education, food assistance and administration.

The measure’s backer, Service Employees International Union-United Healthcare Workers West, estimated it would raise about $100 billion. The nonpartisan Legislative Analyst’s Office projected “tens of billions of dollars” over several years, well short of the union’s figure, and said billionaires leaving the state could cut income tax revenue by less than $1 billion a year.

The case for and against

Supporters argued the money would help offset federal health care cuts and keep hospitals, clinics and emergency rooms open. “When federal leaders choose tax breaks for billionaires over keeping our hospitals and ERs open, working families pay the price,” health care worker Andres Gonzalez said in a statement posted by the Yes campaign. The California Democratic Party and the California Federation of Labor Unions backed the measure.

Opponents said the tax could push wealthy residents and investment out of California. Gov. Gavin Newsom was one of the earliest opponents and tried to keep the measure off the ballot, according to San Jose Inside. San Jose Mayor Matt Mahan also opposed it.

The spending gap was large. Billionaire opponents and business groups put $316.7 million into defeating Prop 40, including support for two rival measures, San Jose Inside reported. Google co-founder Sergey Brin led the opposition, moving out of state and giving $102 million to a committee he founded to fight the tax.

How Props 41 and 42 tie in

Two competing measures were written to conflict with Prop 40. Under the state constitution, when conflicting measures pass, the one with the most yes votes wins.

• Prop 41 would have required audits of programs funded by new special taxes and barred new state taxes exempt from the state spending limit. Early returns show it failing, at about 47.5% to 47.8% yes.
• Prop 42 would prohibit new state taxes on retirement holdings, financial assets and other personal savings and restrict certain retroactive taxes. Returns reported Wednesday showed it with about 54.3% to 54.6% support, meaning it was on track to pass. Newsom endorsed Prop 42.

Because Prop 40 itself appears to be failing, the conflict rules may not end up mattering for the billionaire tax.

Controversy around the campaign

Prop 40 was the idea of Dave Regan, president of SEIU-United Healthcare Workers West. San Jose Inside reported that some SEIU California members accused him in an internal investigation of intimidating women and of trying to pressure groups into supporting the measure. The union and Regan have called those allegations “categorically false” and a “smear campaign.”

Other California propositions

Early returns also showed voters rejecting Prop 39, the voter ID measure, by about 59% to 41%, while housing bonds (Prop 1), a larger rainy-day fund (Prop 2) and extending higher income tax rates on top earners (Prop 3) were all passing with roughly 58% to 60% support.

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