Los Angeles Billionaire Relocates to Nevada to Avoid California Wealth Tax
Los Angeles billionaire Don Hankey has made headlines with his recent relocation to Nevada, a move aimed at circumventing California’s proposed wealth tax. His purchase of a luxurious $21 million penthouse at The Summit Club, just outside Las Vegas, marks the most considerable amount paid for a condo in the area.
Background of the Move
The 82-year-old entrepreneur, who built his financial services empire—inclusive of Westlake Financial—since 1972 in California, is reacting to the state’s planned 5% billionaire wealth tax. This tax would apply to nearly all assets held by billionaires residing in California as of January 1, 2026. Hankey stated his concerns about the impacts of this tax, highlighting a trend of wealthy individuals and businesses leaving California.
Details of the Purchase
- Property Location: The Summit Club, just outside Las Vegas
- Purchase Price: $21 million
- Size: 5,000-square-foot luxury penthouse
- Amenities: Five bedrooms, private lap pool, fully furnished, including art and silverware
Hankey described his decision to relocate as feeling unwelcome in his home state, where he has created substantial jobs. He intends to spend roughly two-thirds of the year outside California while maintaining interests in the state.
Financial Implications of the Proposed Tax
California’s proposed tax legislation requires 900,000 signatures to qualify for the ballot. If passed, it aims to generate around $100 billion for healthcare and education. Billionaires like Hankey, whose net worth stands at an estimated $8.2 billion, could face substantial liability—around $400 million under the proposed tax. Other notable billionaires are also considering relocation due to similar concerns.
The Bigger Picture
Several high-profile entrepreneurs have left or are considering leaving California due to the proposed tax. This list includes figures like Google co-founder Larry Page and Uber founder Travis Kalanick. Despite some arguments that few billionaires will actually relocate, the trend indicates significant movement among the wealthy.
Political Response
Governor Gavin Newsom has expressed his disapproval of the proposed tax. However, proponents argue that conversations around tax migration are exaggerated. As wealthier individuals leave California, the state may face broader financial repercussions.
Hankey’s case reflects a larger pattern of high-net-worth individuals seeking taxation-friendly environments, emphasizing concerns about the long-term feasibility and growth within California’s economy under such tax burdens.
