Assemblyman Alex Lee, a Democrat, introduced the bill last week. It seeks to impose a 1.5% tax on residents' worldwide net worth in excess of $1 billion, or $500 million for a married taxpayer filing separately, starting as early as 2024.
By 2026, residents with net worths above $50 million, or above $25 million for married taxpayers filing separately, will have a 1% annual wealth tax.
The tax will apply to every resident, regardless of whether they are in the state part-time or temporarily. It will also allow the state to pursue wealth taxes from former residents who built their wealth in California but moved.