Bill > AB259

This bill would, for taxable years beginning on or after January 1, 2024, impose an annual wealth tax on residents of California. The tax would be 1.5% on worldwide net worth in excess of $1 billion for individuals or $500 million for married taxpayers filing separately. For taxable years beginning on or after January 1, 2026, the tax rate would be 1% on worldwide net worth in excess of $50 million for individuals or $25 million for married taxpayers filing separately, plus an additional 0.5% surtax on net worth in excess of $1 billion for individuals or $500 million for married taxpayers filing separately. The bill would establish procedures for valuing assets and liabilities, reporting requirements, and enforcement mechanisms, including applying the False Claims Act to the wealth tax. It would also create the Wealth Tax Advisory Council and establish continuously appropriated funds to cover the administrative costs of the wealth tax.