Zuckerberg weighed leaving California over billionaire tax before Meta struck a deal

Mark Zuckerberg told Meta's board he might leave California over a proposed one-time 5% tax on billionaires; Meta responded with a new class of nonvoting shares designed to keep him in the state.

Meta CEO Mark Zuckerberg told the company's board he was considering leaving California over Proposition 40, a ballot measure that would impose a one-time 5% tax on billionaires' assets, according to a Meta securities filing.

Zuckerberg could face a multibillion-dollar bill if voters approve the measure in November, with estimates putting it at around $12 billion. Paying it could have forced him to sell some of his supervoting Class B shares, reducing his voting control of Meta from about 60.6% to 53%, the filing says.

Meta headquarters in Menlo Park, California

Meta responded by creating a new class of nonvoting shares. Zuckerberg can sell 20% of them to cover taxes, while the remaining 80% vests in installments over eight years if he stays in California. The company said the goal is for Zuckerberg to keep leading Meta from California, close to its Superintelligence Labs.