Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure
Meta CEO Mark Zuckerberg has agreed to remain a California resident as part of a deal with the company's board to avoid potential tax implications. The agreement allows him to sell non-voting shares to fund AI investments while maintaining his voting control.
Why it matters
The story illustrates the intersection of billionaire tax policy, corporate governance, and the massive capital requirements for AI development.
During a dinner with Meta board members on September 9, Zuckerberg informed them that he was considering leaving California because of the measure, known as Proposition 40, and that he planned to list his Palo Alto, California home for sale four days later, the 109-page filing stated. The ballot proposal, which could be subject to lawsuits even if voters approve it, calls for a one-time 5 percent tax on stock and other assets held by billionaires in the state as of January 2026.
Many wealthy individuals, including Zuckerberg, currently avoid significant tax payments by borrowing against their shares and taking low salaries—$1 annually in the Meta CEO’s case. Zuckerberg purchased a home in Florida this past February, the Wall Street Journal reported at the time.
Headlinne story · 6 newsrooms
Meta Approves Stock Plan to Keep Mark Zuckerberg in California
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