Mark Zuckerberg agrees to stay in California amid proposed billionaire wealth tax

Meta CEO Mark Zuckerberg has agreed to remain a California resident for eight years as part of a plan approved by Meta's board to create new nonvoting shares he can sell to pay a proposed billionaire wealth tax, CBS News reported.

Zuckerberg had threatened to move out of California if voters approved the first-of-its-kind wealth tax on the November 3 ballot, known as Proposition 40, which would impose a one-time 5% state tax on billionaire wealth.

Meta stated that Zuckerberg's presence near its Menlo Park headquarters is critically important to the company's success. To avoid Zuckerberg having to sell voting shares and reduce his control of Meta, the board approved issuing new nonvoting common stock for him to sell to raise cash to pay the tax if it passes.

Zuckerberg also said he would relocate to the state where Meta's headquarters is located if the company moves out of California, according to the regulatory filing. The proposal could affect about $12.4 billion of Zuckerberg's estimated $247 billion net worth.

The disclosure highlights the ongoing public debate over the billionaire wealth tax in California and Meta's efforts to maintain Zuckerberg's leadership and presence at its headquarters.