California billionaire tax spurs wealthy to buy Nevada homes

California lawmakers have introduced a "Billionaire Tax Act" that would levy a 5% annual tax on net assets exceeding $1 billion. Proponents say the measure could raise about $100 billion to offset cuts in health, education and social‑service funding, while critics warn it could trigger capital flight.

Since the proposal gained traction, a noticeable influx of high‑net‑worth individuals has been purchasing luxury properties on the Nevada side of Lake Tahoe, where taxes are lower. Sales of homes above $20 million in Nevada rose from 11 to 27 compared with California, and buyers such as Sergey Brin and Steve Jurvetson have spent a combined $220 million on estates in Crystal Bay and Incline Village.

The debate highlights broader concerns about wealth concentration, tax policy, and the potential relocation of affluent taxpayers from California to neighboring states.