Meta CEO Mark Zuckerberg considered moving out of California because of its proposed billionaire tax, Meta disclosed in a new SEC filing on Wednesday.

Next month, Californians will vote on Proposition 40, a one-time tax on the assets of the state's billionaires.

The filing said that Zuckerberg told a special committee formed by Meta that he was considering moving.

In response, the committee concluded that it was "critically important" for Zuckerberg to keep running Meta close to its Silicon Valley headquarters — particularly to its AI division, Meta Superintelligence Labs.

It's one of several reasons the company is granting the Meta CEO a new stock class, the other being so he can stay in charge as it raises more cash for its AI initiatives.

The shares would give Zuckerberg $20 billion in "immediate liquidity" to cover the tax by selling stock without losing control of Meta, if the tax passes. The new shares wouldn't add to Zuckerberg's net worth or increase his percentage ownership of Meta.

"The goal is to keep Mr. Zuckerberg continuing to lead the Company from California," the filing says.

Meta declined to comment. A person familiar with the matter said that the new class of shares, which totals $150 billion, is also intended to raise capital, compensate employees, and keep Meta's stock price on the right track.

Meta's filing showcases how tech billionaires are responding to the tax proposal. Some, including Google cofounder Sergey Brin and former CEO Eric Schmidt, poured hundreds of millions of dollars into attack ads against the proposal.

While Zuckerberg has taken a lower-key approach, it's clear he's been taking the proposed tax seriously.

The Meta CEO, who is worth about $240 billion according to Forbes, has multiple residences in California, including in Palo Alto and Lake Tahoe.

He also has a sprawling property portfolio outside the state, including a doomsday bunker in Hawaii, a waterfront mansion in Miami, and a castle in Ireland.

Have a tip? Contact this reporter securely on Signal at charlesrollet.12 or +1-628-282-2811. Use a personal email address and a non-work device; here's our guide to sharing information securely.

Read next

Business Insider tells the innovative stories you want to know

Business Insider tells the innovative stories you want to know

Business Insider tells the innovative stories you want to know

Business Insider tells the innovative stories you want to know

Charles Rollet

You're currently following this author! Click to unsubscribe from email alerts.

Charles Rollet is Business Insider's tech correspondent in San Francisco, where he focuses on breaking major news about the AI industry. In 2025, he led an investigation which revealed that Scale AI had inadvertently exposed confidential data about its workers and clients. In 2026, he was the first to break the news that Meta had halted a controversial keystroke tracking program.Prior to joining BI, Charles worked at TechCrunch covering startups and VC in San Francisco. Before that, he was based in Southeast Asia for a decade, where his work won a Gerald Loeb award and was nominated for a Society of Publishers in Asia award. His reporting on the surveillance industry led to US human rights sanctions on five Chinese security camera manufacturers.Charles is especially interested in how frontier AI models are built and trained. He has a master's degree in business reporting from NYU and a bachelor's degree in history from Northwestern.You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811. Charles keeps sources anonymous. Please use a non-work device to reach out.

• Meta
• Mark Zuckerberg
• California
• More
• Billionaires
• Policy