Don Hankey, an 82-year-old Los Angeles billionaire, has bought a $21 million penthouse near Las Vegas, citing California’s proposed 5% billionaire wealth tax as a key reason for his move.
Hankey, a lifelong Californian, sold his California residence to relocate to Nevada, saying he “felt a little bit like [he] wasn’t wanted.” He purchased a fully furnished, five-bedroom condo at the Summit Club, complete with art, silverware, and a private lap pool.
The new tax proposal targets nearly all assets held by California billionaires, applying a one-time 5% levy. If passed, it could raise around $100 billion for state programs. Hankey, with an estimated net worth of $8.2 billion, would owe roughly $400 million if considered a California resident.
Hankey founded the Hankey Group in 1972, growing it into one of the nation’s largest subprime auto lenders. The company employs thousands and has interests in insurance, software, and real estate. Despite moving, Hankey says his companies will remain headquartered in Los Angeles for now.
Hankey plans to spend about two-thirds of the year outside California, signaling a shift toward investing in Nevada due to the state’s friendlier political and tax climate.
Other billionaires have expressed similar concerns, including Uber founder Travis Kalanick and Rippling CEO Parker Conrad. Some, like Google cofounder Larry Page, have already moved to other states, such as Florida and Miami.
California Governor Gavin Newsom opposes the tax, while proponents argue that very few billionaires actually leave the state. Critics like Russell Savage warn that wealthy departures could hurt California’s economy over time.
Hankey says he moved now to avoid potential future taxes, suggesting that the 5% levy may not be the last, and that California’s policies may continue pushing wealthy residents out.
