The “One-Time” Wealth Tax Is Not Intended to Be “One-Time.” Thank you CalTax Foundation for hosting me and co-panelist Andrew Wilford today to discuss California residency issues, with an emphasis on California Initiative No. 25-0024, dubbed the “2026 Billionaire Tax Act.” https://lnkd.in/gF6yeQus

Although proponents call this a “one-time” tax, that is misleading. The text of the initiative gives the Legislature blanket power to “amend the 2026 Billionaire Tax Act” in a manner “consistent with” the “purposes of the Act.” This could mean just about anything: making the tax permanent, lowering the net worth threshold, increasing the rate; or creating further procedural barriers to legal challenges. In other words, the initiative gives the Legislature sweeping authority to expand this tax without ever bringing it back to the voters. This is not intended to be a one-time tax. Nor is it intended to apply only to “billionaires.” The tax is a Trojan horse. If approved, expansion of the tax is only a matter of time—not “one-time.”

Dakessian Law monitors California tax legislation and litigation. More to come.