# Meta Strikes Deal to Help Zuckerberg Pay California's Proposed Wealth Tax Without Giving Up Control

> Facing a potential multibillion-dollar bill if California voters approve a billionaire wealth tax, Mark Zuckerberg agreed to stay a state resident for eight years in exchange for new nonvoting Meta shares he can sell to cover the tax.

- Source: Principle Post
- Canonical URL: https://principlepost.com/article/zuckerberg-meta-california-wealth-tax-deal
- Author: Principle Post Staff
- Section: Politics
- Published: 2026-10-22T20:29:45.000Z
- Updated: 2026-10-22T20:29:45.000Z
- Tags: Mark Zuckerberg, Meta, California, wealth tax, Proposition 40

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Meta has struck an unusual agreement with CEO Mark Zuckerberg designed to help him cover a potential multibillion-dollar California tax bill without loosening his grip on the company. Under the deal, reached on October 19, Zuckerberg committed to remaining a California resident for eight years after telling a special committee of Meta's board that he was weighing a move out of state if voters approve a proposed wealth tax this November.

## New shares built to solve a tax problem

At issue is Proposition 40, a California ballot measure that would impose a one-time 5% tax on billionaires' wealth. Zuckerberg told the board he could face a "significant, multi-billion dollar tax" if the measure passes, and that the liability was significant enough to make relocating his primary residence out of California a real option.

To keep him in the state while giving him a way to pay, Meta plans to introduce a new class of nonvoting Class C common stock starting in January 2027, with one Class C share issued for every existing Class A or Class B share shareholders hold. Zuckerberg would be permitted to sell 20% of the Class C shares he receives right away, giving him liquidity to cover a potential tax bill without selling any of the voting shares that preserve his control over Meta.

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Originally published by Principle Post. Free to cite with attribution and a link to https://principlepost.com/article/zuckerberg-meta-california-wealth-tax-deal.