Sacramento — Meta Deal Helps Zuckerberg Pay Billionaire Tax

Meta's board has struck a deal with CEO Mark Zuckerberg that would let him sell shares to help cover a possible new California tax on billionaires, according to regulatory filings published this week and reported by The Associated Press. The arrangement, announced Wednesday, would preserve Zuckerberg's majority control of the company while giving him room to raise cash if California voters approve the tax on Nov. 3.

What did Zuckerberg and Meta agree to?

Under the deal, Meta created a new class of non-voting shares that Zuckerberg can sell "for any reason," including to pay a potential wealth-tax bill, according to the filings cited by the AP. The structure lets him raise cash without giving up voting control of the company he founded. In exchange, Zuckerberg committed to staying in California for eight years unless "material unforeseen circumstances" make it "prudent or advisable for him to reside elsewhere," the filings state.

The agreement followed reports that Zuckerberg was weighing a sale of his Palo Alto home last month as he considered how to handle the proposed tax, the AP reported.

How much could the tax cost Zuckerberg?

The ballot measure would impose a one-time 5% tax on the net worth of any Californian worth more than $1 billion. Zuckerberg, ranked the sixth-richest person in the world with a net worth Forbes puts above $220 billion, would face a bill exceeding $11 billion if the measure passes and applies to him as calculated, according to the AP's reporting on the filings.

The tax would apply to anyone who had a primary residence in California as of Jan. 1, 2026. The state's nonpartisan Legislative Analyst's Office says a few hundred billionaires live in California, the AP reported.

Why is this tax on the Nov. 3 ballot?

The measure targets wealth built through investment gains rather than wages, a shift from how California normally taxes income, the AP reported. Supporters say most of the revenue would backfill federal funding cuts to healthcare, with 10% earmarked for education and food-assistance programs.

Backing the measure are groups including SEIU United Healthcare Workers West and Vermont Sen. Bernie Sanders, who argue it would make sure the wealthiest residents pay a larger share of taxes, according to the AP.

What do supporters and opponents say?

California Gov. Gavin Newsom, a Democrat, has warned the tax could push wealthy residents out of the state, which the AP reported could create budget problems later because California relies heavily on high earners for income tax revenue.

Google co-founders Sergey Brin and Larry Page have taken that warning further by starting to cut ties with the state, the AP reported. Brin and other tech executives and venture capitalists have put money into a political committee that opposes the tax and backs other ballot measures meant to blunt its effect, according to the AP.

Supporters point to the Zuckerberg-Meta arrangement as evidence that billionaires are finding ways to stay rather than leave. "This is the nail in the coffin to months of scare tactics claiming that billionaires are fleeing California," said Suzanne Jimenez, chief of staff for SEIU United Healthcare Workers West, in a statement cited by the AP.

Opponents have not issued a public response specifically to the Meta filings in the material reviewed for this report.

What happens next?

California voters decide the measure's fate on Nov. 3. Until then, the Meta arrangement stands as a test case for how the state's wealthiest residents might respond if the tax becomes law.

What to watch:

• Whether other billionaires file similar corporate arrangements before the Nov. 3 vote.
• How the political committee backed by Sergey Brin and other tech investors spends money in the campaign's final weeks.
• Whether additional high-net-worth Californians announce plans to leave the state, as Brin and Larry Page have done, according to the AP.
• The final vote tally on Nov. 3 and any legal challenges that follow if the measure passes.
• Whether Meta's non-voting share structure becomes a template other California-based companies offer their billionaire founders.

The filings do not specify exactly how many shares Zuckerberg might sell or when, and Meta has not released a public statement beyond the regulatory disclosures cited by the AP. The outcome of the Nov. 3 vote will determine whether the new share class is ever used for its stated purpose.