California advances major tax proposals for Bay Area transit and billionaire wealth

State lawmakers in Sacramento have approved legislation creating a regional taxing district that would place a sales tax on the Bay Area ballot. The measure, supported by a petition with roughly 306,000 signatures, aims to raise about $1 billion a year for 14 years – roughly $14 billion – to fund BART and other transit agencies such as Muni, Caltrain, AC Transit, VTA and SamTrans. The tax would be decided by a simple majority vote, bypassing the two‑thirds super‑majority normally required for such measures. Proponents argue the funding is needed as BART faces a projected $376 million deficit for FY27 after fare revenues fell from 70 % to 22 % of operating costs.

Separately, California voters are expected to decide on a one‑time 5 % wealth tax on the net worth of about 200 state billionaires. Estimates of the revenue vary, with supporters projecting $100 billion over five years and critics citing figures as low as $40 billion. The funds would primarily address healthcare budget gaps, but opponents warn the tax could trigger an exodus of wealthy residents and investors, potentially harming the state’s long‑term economic growth. The proposal has sparked a sharp debate among business leaders, tech executives and policymakers ahead of the November ballot.