Local Politics · Los Angeles, CA
Prop 40 Billionaire Tax Vote Nov. 3 Could Impact California Sports Owners
Proposition 40, on the November 3 ballot, would impose a one-time 5% levy on many assets of billionaires, including corporate holdings, to offset an estimated $100 billion in federal healthcare cuts affecting California's most vulnerable residents. The measure's impact on sports team owners depends largely on whether they are declared official California residents for state tax purposes. Owners potentially subject to the tax include those of the Chargers, Warriors, Padres, Sharks, Ducks, and incoming Lakers owner Bob Iger, while several out-of-state owners may be unaffected. Sports agent Leigh Steinberg warned the tax could raise ticket prices, while University of Missouri law professor David Gamage argued consumers would suffer more from healthcare funding cuts than from higher game-day costs.