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SACRAMENTO, Calif. — <\/span>SACRAMENTO, Calif. (AP) \u2014 Mark Zuckerberg<\/a> made a deal with Meta’s board to help him pay a proposed California tax on billionaires without losing his ownership stake in the company he founded, according to regulatory filings published this week. <\/p>\n If passed by voters in the Nov. 3 election, the measure would levy a one-time 5% tax on the wealth of Californians whose net worth exceeds $1 billion. Zuckerberg is the sixth-richest person in the world with a net worth estimated at more than $220 billion, according to Forbes. That would put his tax liability at more than $11 billion.<\/p>\n Actions announced by the tech giant<\/a> on Wednesday will keep Zuckerberg as the majority owner of the company \u2014 and also give him the ability to sell some of a new class of non-voting shares<\/a> \u201cfor any reason,\u201d including to pay potential bills from the wealth tax<\/a>.<\/p>\n The compromise came after Zuckerberg told the board he was considering selling his Palo Alto home last month in anticipation of the proposed tax. But he later struck the deal and committed to staying in California for eight years, unless \u201cmaterial unforeseen circumstances\u201d arise that make it \u201cprudent or advisable for him to reside elsewhere,\u201d according to the filings.<\/p>\n A few hundred billionaires live in California, according to the nonpartisan Legislative Analyst’s Office. The tax would apply to anyone with a primary residence in the state as of Jan. 1, 2026.<\/p>\n Most of the money would be used to backfill federal funding cuts to healthcare, and 10% of it would go toward education and food-assistance programs. Proponents, including SEIU United Healthcare Workers West and Vermont Sen. Bernie Sanders, say it would help ensure the ultra-rich pay their fair share. <\/p>\n But opponents, including California Gov. Gavin Newsom, a Democrat, have warned it could prompt the state’s wealthiest to leave the state. That could cause budget problems down the line because the state relies heavily on the rich for income tax revenue.<\/p>\n SEIU United Healthcare Workers West said the Zuckerberg deal proves opponents wrong.<\/p>\n \u201cThis is the nail in the coffin to months of scare tactics claiming that billionaires are fleeing California,” Suzanne Jimenez, the union’s chief of staff, said in a statement.<\/p>\n Zuckerberg’s deal with Meta offers another glimpse into how the ultrawealthy are bracing for the proposed tax, which targets the main way they make money, through their investments, instead of by raising taxes on the paycheck they receive from work. Other billionaires have taken a different approach by starting to cut ties with the state, including Google co-founders Sergey Brin and Larry Page.<\/p>\n Brin and other tech moguls and venture capitalists have poured millions into a political action committee opposing the proposed tax and backing other ballot measures designed to nullify it. The committee, Building a Better California, has raised more than $333 million, 30% of which has come from Brin. By comparison, the \u201cYes on 40\u201d campaign has raised $32.7 million.<\/p>\n Zuckerberg has taken a salary of $1 each year since 2013 as Meta\u2019s CEO. In its regulatory filings, Meta maintained that Zuckerberg would not receive additional compensation \u2014 and argued that he would \u201ceffectively be paying to serve as the Company\u2019s chief executive officer while residing in California\u201d if the state\u2019s wealth tax is enacted. The company said the new stock he will be allowed to sell \u2014 representing 10% of his overall economic stake in the company \u2014 would help mitigate that.<\/p>\n Beyond securing Zuckerberg\u2019s future in California, Meta\u2019s new class of shares is intended to boost the company\u2019s ability to raise capital for its investments in artificial intelligence infrastructure, according to the filings. Meta also said it established the new shares for employee compensation and acquisitions, among other reasons.<\/p>\n \u201cIt will expand our funding tools and give us flexibility to invest behind the unprecedented momentum we\u2019re seeing across every part of our business driven by AI,\u201d Meta Chief Financial Officer Susan Li said on an earnings call.<\/p>\n ___<\/p>\n Grantham-Philips reported from Chicago.<\/p>\n<\/div>\n