Filing: Meta says Mark Zuckerberg is considering leaving California if it passes a one-time 5% tax on billionaires; voters will decide on the measure next month (Pierre Paulden/Bloomberg)

During a September 9 dinner with Meta board members, Mark Zuckerberg told them he was considering leaving California due to Proposition 40, a tax ballot measure that would impose a 5% tax on billionaires' assets in the state. He planned to put his Palo Alto home on the market. The ballot, which could lead to lawsuits even if approved, aims to tax the assets of billionaires as of January 2026.

Zuckerberg recently bought a home in Florida, reportedly due to concerns about potential tax payments. A special Meta board committee expressed worries about the company's challenges during the COVID-19 pandemic when Zuckerberg couldn't be physically present with the management team. To address these concerns, the committee and Zuckerberg reached an agreement that would allow him to sell 20% of new nonvoting shares to help pay any taxes owed.

The remaining 80% could be sold over eight years as long as he stayed in California. If he sold the shares early, he'd have to offload some voting shares, unless there were "material unforeseen circumstances" making it prudent to move elsewhere. The agreement specifies that Zuckerberg just needs to remain where Meta's headquarters are, meaning the company and Zuckerberg could potentially relocate together.

While some California companies have moved to Texas, Nevada, and other states in recent years, the highly pioneering AI development in Silicon Valley could make a move difficult for Meta board members. However, recent polling suggests that with $129 million spent campaigning against Prop 40, it will likely fail to gather enough votes.