Full Breakdown
Billionaire Tax Measure Triggers High-Profile Exodus from California
By Drooid · · How we work
The Measure and Its Imminent Deadline
California voters will decide on Proposition 40 within weeks. The proposal would impose a one-time 5 % levy on the net worth of individuals who were California residents as of the start of the year 2026 and whose wealth exceeds $1 billion. The tax is projected to raise roughly $100 billion, but the residency cutoff has already prompted several ultra-wealthy individuals to relocate before the date.
Larry Page’s Relocation and Miami Purchases
Google co-founder Larry Page, whose net worth is estimated at $292 billion, moved his primary residence out of California in late December. Page’s family office, Koop, and affiliated entities—including Flu Lab LLC, One Aero, and Oceankind—were re-incorporated in Delaware that month, according to Fortune’s analysis of state filings. Shortly thereafter, Page bought two estates in Miami for a combined $173.4 million: a 11,855-square-foot property in Coconut Grove priced at $101.5 million and an adjacent parcel for $71.9 million. Had he remained a California resident, the billionaire tax would have cost him nearly $15 billion.
Potential Revenue Loss and Opposition Funding
Fortune estimates that Page, fellow Google co-founder Sergey Brin, venture capitalist Peter Thiel, and former Uber CEO Travis Kalanick together would have owed about $29 billion—more than a quarter of the measure’s projected revenue. Opponents of Proposition 40 have spent over $187 million on campaign efforts, dwarfing the roughly $32 million raised by supporters. Two additional ballot initiatives, Propositions 41 and 42, backed by billionaire donors, would nullify Proposition 40 if either receives a majority of votes.
A Broader Migration of Tech Billionaires to Florida
Page’s move mirrors a larger trend of tech magnates relocating to Florida, a state without income, capital-gains, or wealth taxes. Amazon founder Jeff Bezos sold his Seattle mansion for a record $63 million in late 2023 and now resides in a $237 million Miami compound. Former Starbucks CEO Howard Schultz purchased a $44 million Miami penthouse in March, citing family considerations. Brin, who settled near Lake Tahoe, also acquired a Miami home. Miami developer Robert Rivani, who moved from Los Angeles, described the tax-free environment as “a huge boon for us.” Some real-estate agents note that many ultra-wealthy individuals would prefer to stay in California but feel compelled by the financial impact of the proposed levy.
Outlook and Legal Uncertainties
Even if Proposition 40 passes, the residency rule is expected to face legal challenges, according to the California Budget & Policy Center, which notes that courts will examine factors such as time spent in the state and business ties when determining residency. The outcome of those challenges, along with the potential success of counter-proposals Props 41 and 42, will shape whether the state ultimately captures the projected $100 billion.