Mark Zuckerberg Will Stay in California Even If Billionaire Tax Passes—After Spending $112 Million on Palo Alto Megacompound

Meta and its CEO Mark Zuckerberg have reached an agreement that will keep the social media mogul in California, after he raised concerns over a proposed billionaire wealth tax.Proposition 40, a ballot initiative that would establish a one-time tax of up to 5% of a billionaire’s net worth, so long as they were a California resident on Jan. 1, 2026, caused Zuckerberg to tell Meta he was considering moving his primary residence outside California.If the measure passes in November, Zuckerberg could see a tax bill of $12.5 billion, due to his nearly $250 billion net worth.Under the agreement, Zuckerberg will receive non-voting Class C Meta shares that he can sell to cover the potential wealth tax bill. In return, he must commit to remaining a resident of California, where Meta is headquartered, for eight years, according to a company filing.The CEO will be able to immediately sell up to 20% of his Class C shares, representing 10% of his “overall economic stake in the Company,” which would allow him to pay the proposed tax without impacting his majority voting control.Meta planned to issue the new Class C common stock in January 2027 as a means to fund acquisitions and create employee eq...