California billionaire tax trailing in early San Francisco returns

Early election results show Proposition 40, which would impose a one-time 5 percent tax on Californians with a net worth of $1 billion or more, is trailing significantly statewide, according to the San Francisco Standard and Mission Local.

In San Francisco, voters are nearly evenly divided on Proposition 40, with the measure down nearly 15 points statewide but close locally, Mission Local reported.

Two competing measures, Propositions 41 and 42, aim to nullify the billionaire tax. Proposition 41 is trailing by about 5 points, while Proposition 42 is leading by nearly 9 points, according to Mission Local.

The billionaire tax would apply to approximately 200 Californians who were residents as of January 1, 2026, with most revenue intended to address the state's healthcare budget deficit, as well as education and food assistance programs, Mission Local noted.

The measure has divided California Democrats, with the state party narrowly endorsing it, while Governor Gavin Newsom and other establishment figures oppose it. Opponents have spent hundreds of millions of dollars campaigning against the tax, including funding for Propositions 41 and 42, the San Francisco Standard reported.