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Business & Finance · October 21, 2026

Mark Zuckerberg threatened to dump $110M California home over billionaire tax, Meta reveals in filing

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Meta CEO Mark Zuckerberg reportedly considered moving out of California and selling his $110 million Palo Alto home to avoid a proposed 5% wealth tax (Proposition 40). To prevent Zuckerberg from relocating or losing voting control through potential stock liquidations to pay the tax, Meta's board of directors agreed to issue a new class of non-voting Class C shares as a stock dividend. This maneuver allows Zuckerberg to sell shares for taxes or philanthropy while maintaining his approximately 60% voting majority. The decision followed months of negotiations that were at times contentious, involving key board members like Tony Xu.

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Reported by multiple outlets

  • Mark Zuckerberg considered leaving California due to a proposed billionaire wealth tax.
  • Meta created a new class of non-voting Class C shares.
  • The new share structure was designed to allow Zuckerberg to sell stock without diluting his voting control.
  • The shares were distributed as a one-for-one stock dividend.
  • Zuckerberg currently holds approximately 60% of Meta's voting control.

Reported by only some outlets

  • The proposed wealth tax is Proposition 40, a 5% tax on billionaires.
  • Zuckerberg's Palo Alto compound is valued at $110 million.
  • His potential tax bill could reach approximately $12.5 billion.
  • Board members Tony Xu, Robert Kimmitt, and Charles Songhurst were involved in the negotiations.
  • The board committee reportedly considered resigning during contentious discussions.
  • Meta needed to raise outside capital in late 2025 to fund AI development.

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