Mark Zuckerberg Agrees to Stay in California Despite Billionaires’ Tax Ballot Measure

Meta has reached an agreement with Mark Zuckerberg that ties the sale of some of his new shares to his continued residence in California. The deal followed his consideration of leaving the state over Proposition 40, a proposed tax on billionaires’ assets, and reflects the board’s concern about keeping him close to company leadership and its AI work.

Proposition 40 would impose a one-off 5 per cent tax on stock and other assets held by billionaires in California as of January 2026, though it could face legal challenges. Meta plans to issue non-voting shares to existing shareholders; Zuckerberg may sell 20 per cent of his allocation to pay any tax owed, while the rest can be sold in portions over eight years if he stays where Meta is headquartered. Recent polling suggests the measure may fail, despite about $129 million being spent campaigning against it.