California's 5% billionaire tax fails to pass... Official certification on December 11

California voters have rejected Proposition 40, the ballot measure that would have imposed a one-time 5% tax on net worth above $1 billion, with the Associated Press calling the race on December 9; official certification by state election authorities is expected December 11. The tax would have applied to state residents and certain trusts with net worth of at least $1 billion as of January 1, 2026, valued on December 31 of that year, based on assets minus liabilities rather than annual income. The defeat removes a potential hit to the state's wealthiest founders and investors, many of them tied to the tech and crypto sectors concentrated in Silicon Valley. The AP call is separate from the official count, and remaining ballots are still being tallied.