Zuckerberg Secures Deal to Remain in California Amid Wealth Tax Proposal

Mark Zuckerberg, the CEO of Meta, has reached an agreement to continue living in California. This decision follows his earlier consideration of leaving the state due to a proposed billionaire wealth tax. The initiative, known as Proposition 40, would impose a tax of five percent on the net worth of billionaires. This tax would apply to individuals who are California residents on January 1, 2026.

Zuckerberg, who is the sixth-richest person in the world with a net worth near 250 billion dollars, has previously considered moving his primary residence to avoid this potential tax burden. However, under the new agreement with Meta, he has committed to remaining a resident of California for eight years. He will also stay in any state where Meta maintains its headquarters. This commitment is significant for both Zuckerberg and Meta, as the company's main operations are based in California.

To help Zuckerberg cover the possible tax bill, Meta will issue a new class of non-voting shares. He can sell 20% of these Class C shares immediately. This represents 10% of his total economic stake in the company. This arrangement allows him to generate funds for the tax without giving up his voting control of Meta. If voters approve Proposition 40 in November, the tax will be due in 2027. Payments could then be spread over five years, though with an additional cost. This strategic move ensures Zuckerberg's continued presence in California while managing his financial obligations.