California Billionaire Tax Support Falls to 45% as Aaron Kirman Warns of 5% Levy Freeze
Updated
Updated · Fox Business · Sep 29
California Billionaire Tax Support Falls to 45% as Aaron Kirman Warns of 5% Levy Freeze
2 articles · Updated · Fox Business · Sep 29
Summary
45% of likely California voters now back Proposition 40, down from 50% earlier this year, while luxury broker Aaron Kirman says the proposal is already stalling high-end home deals.
Kirman said the threat of the one-time 5% tax on certain assets above $1 billion—combined with inflation, high mortgage rates and other state taxes—has pushed wealthy buyers and sellers into a wait-and-see mode.
The tax would apply to people who were California residents on Jan. 1, 2026, with payments due in 2027 and spread over five years for an added cost; 43% oppose it and 12% remain undecided.
Kirman argued Los Angeles's Measure ULA shows the risk of tax backfire, saying transaction volume has fallen 60% and apartment building 70% since the city's transfer tax took effect.
California votes on Proposition 40 on Nov. 3 as the state tries to protect its fourth-largest-in-the-world economy amid a slight population decline and fears of more wealthy residents leaving.