Proposed California wealth tax drives billionaire exodus to Florida real estate, locals confirm
Florida real estate managers and city officials are reporting an influx of California billionaires hoping to relocate due to concerns over a potential wealth tax.
A recent initiative proposed by the Service Employees International Union–United Healthcare Workers West would impose a one-time 5% tax on the net worth of California residents with assets exceeding $1 billion. Though the proposal does not yet qualify for the November 2026 ballot, its push is already motivating billionaires to flee to the Sunshine State.
"The California guys, all billionaires, are running away from the wealth tax," Brett Harris of Bespoke Real Estate in Miami told the Los Angeles Times Wednesday. "I have three things under contract north of $600 million."
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Chase Berger, a lawyer who specializes in real estate transactions, also told the Los Angeles Times that he has seen a growth in "stealth ownership" deals to purchase Florida land by wealthy clients.
"I used to do a handful of these a year... now it’s dozens," Berger said, adding, "It’s a residency war with California that they’re fighting."
Florida developers and landowners have even begun preparing cities beyond Miami and Palm Beach for potential residents, acknowledging that coastal areas are in high demand.
"Florida is the new California," Palm Beach County Commissioner Maria Sachs said. "It reminds me of the California of the ‘50s and ‘60s, where people flocked for jobs and to raise families and there was great weather."
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California Gov. Gavin Newsom has come out against the wealth tax, saying that it "makes no sense," and that it's "really damaging to the state."
"I have a very specific agenda that I’m trying to follow, and then also [be] very pragmatic about what I don’t know — that is, all the things that come your way that are not on the agenda," Newsom told Politico in January. "This is not how I wanted to spend my last year."
"The good news is the overwhelming opposition to this by others," Newsom said. "I think it will be defeated, because I think people understand what it does versus what it promotes to do."
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Fox News Digital reached out to Newsom's office and Florida Gov. Ron DeSantis' office for comment.
The Service Employees International Union–United Healthcare Workers West has until June to gather enough signatures to qualify for the November ballot. If qualified, voters would then decide whether to implement the measure.