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Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure
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Meta CEO Mark Zuckerberg has agreed to remain in California for eight years, a regulatory filing released Wednesday showed. The commitment could expose him to billions of dollars in one-time taxes if voters approve Proposition 40 next month. The ballot measure proposes a 5 percent tax on stock and other assets held by billionaires as of January 2026.
During a September 9 dinner with Meta board members, Zuckerberg said he was considering leaving California because of the measure and planned to list his Palo Alto home for sale four days later, the 109-page filing stated. He had purchased a Florida home in February, The Wall Street Journal reported. The proposal could face lawsuits even if approved.
A Meta board special committee worried about COVID-19-era difficulties when Zuckerberg could not be physically present with management. Within days, it reached an agreement linking his ability to sell special shares to his continued California residence. The pact was finalized a week ago and announced Wednesday.
Meta plans a new class of nonvoting shares, which existing shareholders will receive proportionally. Under a "Founder Alignment Agreement," Zuckerberg can sell 20 percent of those shares to pay potential taxes. The remaining 80 percent would be available over eight years if he stays in California; early sales would require offloading voting shares absent unforeseen circumstances.
The arrangement could raise funds for Meta's AI data center investments without diluting Zuckerberg's voting control. It also ties him to Meta's headquarters, so both could move. Several California companies have left for Texas and Nevada.
Pioneering AI work remains in Silicon Valley, making a Menlo Park exit difficult for Meta's board. The filing said the goal is to keep Zuckerberg leading from California near Meta Superintelligence Labs. Recent polling suggests Proposition 40 may fail, with $129 million spent against it.
