California voters will consider Proposition 40 in November, a proposed one-time 5 percent tax on billionaires. Meta chief Mark Zuckerberg is reportedly considering leaving California due to this potential tax. Meta lawyers stated in a regulatory filing that approval of Proposition 40 would result in a multibillion-dollar tax for Zuckerberg. Consequently, Zuckerberg informed a special committee that he was evaluating relocating his primary residence outside California. The committee emphasized Zuckerberg's crucial role in the company's growth and the importance of his continued leadership. Concerns were raised about potential challenges if Zuckerberg couldn't be physically present with management, referencing pandemic-era issues. To incentivize his continued leadership, Meta is creating a new class of stock starting in 2027. This move aims to support investments in AI and retain Zuckerberg as an executive. The company also plans a stock dividend distributing class C shares to shareholders. The goal is for Zuckerberg to continue leading Meta from California, near its AI labs. Zuckerberg has committed to remaining a California resident for eight years, provided certain conditions are met and no unforeseen circumstances arise. Meta recently reported a significant increase in third-quarter profit, driven partly by lower taxes and higher revenue. Zuckerberg highlighted the company's progress in delivering "personal superintelligence" and strong performance across its business.