San Diego, California

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Here’s How Much California Wants To Charge Wealthy Residents

California lawmakers are considering another wealth tax, and this one could follow people outside the state.

The Business Journal says the Wealth Tax Act that was introduced by Democratic Assemblymember Alex Lee of San Jose as Assembly Bill 259 would impose an annual 1.5% tax on worldwide net worth above $1 billion, starting as early as 2024.

In 2026, the threshold for being subject to California’s wealth tax rate would fall to $50 million, with a 1% annual tax on wealth that rises to 1.5% for billionaires.

The proposed law also includes provisions that would allow the state to pursue wealth taxes from former California residents who may have built their wealth here but later moved to Florida, Texas or another state.

The legislation would require two-thirds approval in both houses of the California State Legislature.

The related constitutional amendment to raise the cap on taxing personal property would require a separate two-thirds approval from both houses.

The proposed wealth tax would then go before California voters for a final thumbs up or thumbs down, needing a simple majority.

Even if it does get final voter approval, court challenges are also likely.

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