november ballot

A controversial proposal to tax California billionaires to fund healthcare has tenatively qualified for the November ballot, setting the stage for a more intense and expensive battle over whether the state should squeeze the ultra-rich.

Supporters say the proposed tax is crucial to compensate for federal healthcare funding cuts, approved by President Trump and the Republican-controlled Congress, that will harm millions of the state’s most vulnerable residents.

In April, supporters of the billionaire tax submitted nearly 1.6 million signatures, roughly double the number needed to qualify. The California secretary of state’s office on Wednesday declared that enough valid signatures were submitted. The initiative will officially qualify for the Nov. 3 ballot on June 25 unless the proponents withdraw it beforehand.

The initiative would impose a one-time tax of up to 5% on taxpayers and trusts with assets valued at more than $1 billion, with some exceptions, such as property. The levy could be paid over five years. Ninety percent of the revenue would fund healthcare programs, and the remaining funds would be spent on food assistance and education programs. The proposal would cost the state’s richest residents about $100 billion if a majority of voters support it.

Opponents of the measure say the proposal is an ineffective attempt to address the long-term effects of the healthcare cuts and would destroy California’s economy and budget.

The state budget in California is already largely dependent on income taxes paid by its highest earners. Because of that, revenues are prone to volatility, hinging on capital gains from investments, bonuses to executives and windfalls from new stock offerings, and are notoriously difficult for the state to predict.

The proposal already triggered a fierce debate, accentuating the divide between the rich and poor in a state that’s expensive to live in.

The Service Employees International Union-United Healthcare Workers West and other supporters of the billionaire tax say that it would raise $100 billion, offsetting federal funding cuts to healthcare as well as funding education and state food assistance.

But supporters face strong opposition from billionaires with deep pockets. Tech executives and other business leaders oppose the idea and have threatened to move to other states. Opponents say taxing billionaires would harm California’s economy while not addressing underlying financial issues.

The proposal also has divided politicians within the Democratic Party. California Gov. Gavin Newsom spoke out against the billionaire tax, expressing fears that billionaires would move out of the state. But U.S. lawmakers such as California Rep. Ro Khanna and Vermont Sen. Bernie Sanders have backed a billionaire tax, saying the rich should pay their fair share to fund essential services.

Business executives have already poured millions of dollars into groups that oppose the billionaire tax or are promoting alternative solutions to wealth inequality.

Tech executives, venture capitalists and business leaders have donated roughly $118 million to a nonprofit called Building a Better California, according to data on the secretary of state’s website. Most of the funding comes from Google co-founder Sergey Brin, who has given more than $82 million to the group. Executives from DoorDash, Ripple, Stripe and other companies also have contributed.

The group says it supports policies such as expanding access to affordable housing, protecting innovation, requiring government transparency and securing more stable education funding.

PayPal and Palantir co-founder Peter Thiel has contributed $3 million to the California Business Roundtable, which opposes the tax. Former Google Chief Executive Eric Schmidt donated $1 million to that group as well.

California would probably collect tens of billions of dollars from the wealth tax if it passed, but it could also lose other tax revenue, a December letter from the state legislative analyst’s office said. The office also mentioned that it’s tough to predict the exact amount the state would collect because of factors that can affect a billionaire’s wealth such as fluctuating stock prices.

California billionaires who were residents of the state as of Jan. 1 would be affected by the ballot measure if it passes. Some wealthy residents announced plans to moves out of state. On Dec. 31, venture capitalist David Sacks announced that he was opening an office in Austin, Texas, the same day Thiel publicized his firm had opened a new office in Miami.

An effort to exempt new apartment buildings in Los Angeles from the so-called mansion tax moved forward Wednesday, amid concerns that the tax is suppressing housing construction and making the affordability crisis worse.

In a 9 to 5 vote, the City Council directed the City Attorney to draft a ballot measure that would ask voters to change Measure ULA, which funds subsidized housing construction and homeless prevention efforts by taxing nearly all property sales over $5.3 million.

Once the proposal is drafted, it must come back to council for a final approval to make it onto the November ballot.

Wednesday was the deadline for the council to take the vote and stay on track to make the ballot this fall, said Councilmember Katy Yaroslavsky, who introduced the proposal along with Councilmember Tim McOsker.

“We should protect what is working and fix what’s not,” Yaroslavsky told colleagues before the vote. “If we fail to act today, that door closes.”

The ULA tax, approved by voters in 2022, is known as the mansion tax but applies a 4% tax to nearly all properties — whether they are mansions or not — if they sell for more than $5.3 million, increasing to 5.5% for sales at or above $10.6 million.

Under the proposed ballot measure, the ULA tax wouldn’t apply to multifamily buildings sold within 10 years of construction. There would also be some more technical changes put before voters, including to allow ULA money to be spent on temporary housing for homeless people.

Since ULA passed, apartment construction in Los Angeles has plummeted. Some studies have found that the additional tax on property sales has played a big role in the drop-off by adding extra costs for developers.

That’s led to fears that the tax, in some ways, is making the affordability crisis worse by suppressing new supply.

A coalition of business groups and pro-development activists have been pushing the council to amend ULA, in part hoping that the effort will blunt another possible measure on November’s ballot that would cancel ULA and other similar taxes altogether.

ULA supporters, however, have fought the exemption for new construction and say that other factors — like high interest rates — are the reasons for the multi-year construction drop-off. They also point to a surge in new building during the first three months of this year to argue that it’s too early to know ULA’s long-term impact.

Also on Wednesday, the council, in a unanimous vote, directed the City Attorney to draft a separate ballot measure that would exempt homeowners impacted by the Palisades fire from paying the ULA tax for five years, retroactive to Jan. 7, 2025.

“ULA has been an impediment to the Palisades recovery, leaving properties sitting empty and people mired in tax and regulatory hell,” City Councilmember Traci Park, who represents Pacific Palisades, told colleagues before the vote. “We need to move forward with this exemption.”

Similar to the broader ULA changes, the Palisades changes must receive a second council approval to make the ballot.

SACRAMENTO — State Treasurer Fiona Ma and former California Senate Majority Leader Gloria Romero have been declared the two winners of a crowded primary election for lieutenant governor, securing themselves spots on the November ballot.

Ma is a Democrat. Romero is a former Democrat who said she registered as a Republican after splitting with Democrats over the push to oust President Biden as the party’s presidential nominee in 2024.

Both were declared as the top-two winners by the Associated Press. Under California’s primary system, the first and second place finisher advances to the November general election, regardless of their political affiliation.

Ma is a certified public accountant serving as state treasurer. She previously sat on the California Board of Equalization and the San Francisco Board of Supervisors. She also served three terms in the California Assembly.

Romero is an adjunct professor at Pepperdine School of Public Policy. She served as a Democrat in the Assembly and state Senate, becoming the Senate’s first woman majority leader in 2005.

Other notable candidates included former Stockton Mayor Michael Tubbs and Josh Fryday, a member of Gov. Gavin Newsom’s cabinet. Both are Democrats.

The position is largely ceremonial. The lieutenant governor serves on various boards that oversee the University of California, California State University and community college systems, and can be called upon to break a tie in the state Senate. If the sitting governor dies, resigns or is removed from office, the lieutenant governor would assume the role.

Ma and Romero have offered some similar viewpoints. Both candidates previously expressed support for the death penalty and opposition to the state’s plan to ban the sale of new gas-powered cars by 2035.

Neither candidate supports the controversial Billionaire’s Tax Act. Romero, however, has further vowed to shun all potential tax increases.

Ma and Romero will now face off in November. The winner will replace Lt. Gov. Eleni Kounalakis, who is finishing her second term and could not seek reelection. Kounalakis instead ran for state treasurer.

California’s trial attorneys and Uber — longtime courtroom foes — are officially bringing their fight to the November ballot.

A coalition of lawyers and advocates announced Thursday that it has gathered enough signatures to ask voters to support a “first in the nation” law that would make rideshare companies legally responsible for sexual assaults that happen to a driver or customer during a trip. Uber has argued it’s not liable for assaults committed by drivers, who are considered independent contractors.

“We must hold Uber accountable today,” said Danielle Tudahl, who recounted being sexually harassed and chased by an Uber driver after ordering a ride through the app, at a Sacramento news conference. “Californians are finally demanding action to try and close some of these gaps and put people’s safety over corporate profits.”

Uber has described the ballot measure, which is sponsored by the Consumer Attorneys of California, or CAOC, as retaliation for its own November ballot push to cap how much attorneys can earn in car crash cases in California.

“This ballot measure is a cynical ploy by billboard lawyers,” said Nathan Click, a spokesperson for A More Affordable California, an Uber-backed coalition. “CAOC didn’t spend millions to put this on the ballot to protect survivors — their goal is protecting billboard lawyer profits.”

The coalition that supports Uber announced last week it had gathered enough signatures for a measure that would cap attorney fees for car crash cases at 25%, among other changes.

Uber says its ballot measure will give victims a larger cut of their settlement money, rather than the payout getting siphoned off primarily to attorneys and doctors. Attorneys fire back that it will leave thousands of people with small or thorny cases without a lawyer because they won’t have financial incentive to sue.

Both sides are gearing up for an expensive fight. Uber has given more than $77 million. The Alliance Against Corporate Abuse, the CAOC-backed coalition pushing the sexual assault measure, has raised more than $68 million from law firms across the state, according to campaign finance records.

The money has helped pay for billboards that have sprouted across L.A. informing drivers that, according to the New York Times, Uber received a report of sexual assault or misconduct every eight minutes on average between 2017 and 2022. The company was the subject of a series of investigations by the paper into sexual assault by drivers. The company says it has invested billions in keeping riders safe and has “done more than any other company to confront” sexual violence.

The proposed sexual assault measure would require ride-share companies to let riders know if the person picking them up has a history of sexual misconduct and conduct yearly fingerprint and background checks for drivers.

The company is currently fighting more than 3,000 lawsuits from passengers who claim they were sexually assaulted or harassed by Uber drivers. Those cases are being coordinated by a federal judge in California.

The attorney coalition had also pushed an initiative aimed at nullifying Uber’s fee-capping measure if it passed. Alex Stack, a spokesperson for the campaign, said they were “pausing/withdrawing” the measure to “focus the fight on our sexual assault prevention measure and beating Uber’s initiative.”