California’s New Wealth Tax Proposal: Are They Serious?
Article
Tax Notes State
Hodgson Russ State & Local Tax Attorneys Timothy Noonan, Daniel Kelly, and Noah Chase co-authored an article for Tax Notes State surrounding California’s proposed “Billionaire Tax Act,” which would impose a one‑time 5% tax on residents with over $1 billion in net worth. The article highlights major issues with valuation, retroactivity, and legal challenges, including how illiquid or voting‑control assets could create distorted tax liabilities. It also examines competing ballot measures aimed at blocking the proposal and concludes that, regardless of its fate, the proposal is already prompting wealthy residents and entrepreneurs to leave the state.