California’s Billionaire Exodus: Don Hankey’s $21 Million Escape to Nevada

In a bold move that underscores growing tensions between California’s wealthiest residents and its tax policies, billionaire Don Hankey recently made headlines by purchasing a $21 million luxury penthouse in Nevada’s exclusive Summit Club. This transaction—the most expensive condominium sale in Las Vegas history—wasn’t merely a real estate investment but a deliberate exit strategy from California’s proposed 5% billionaire wealth tax. At 82 years old, having lived his entire life in California and built his financial empire there since 1972, Hankey’s decision represents a profound statement about the relationship between tax policy and wealth mobility. “It’s ridiculous,” Hankey told Forbes in an exclusive interview from his new Nevada residence. “We’ve already lost a lot of wealthy people and a lot of good companies that have been moving out of California. This is just going to continue the trend.” His new five-bedroom penthouse, complete with desert views, a private lap pool, and full furnishings including art and silverware, allowed him to make a swift transition away from the state he had called home for over eight decades.

Timing proved crucial in Hankey’s decision-making process. California’s controversial wealth tax proposal would apply a one-time 5% tax on nearly all assets held by billionaires who remain California residents as of January 1, 2026. The initiative, which requires approximately 900,000 signatures to reach the ballot and must overcome potential legal challenges, aims to generate around $100 billion for healthcare and education programs. For Hankey, whose estimated $8.2 billion fortune would translate to a roughly $400 million tax bill, the math made his decision straightforward. He began exploring Nevada properties in December after learning about the proposed legislation, purchasing his fully-furnished penthouse to facilitate an immediate relocation. The billionaire expressed a sense of rejection from his home state despite his contributions to its economy: “I just felt a little bit like I wasn’t wanted. I think we’ve created a lot of jobs in California. We have a few thousand people working for us and we have a profit sharing plan. And I have to leave the state.”

Throughout his career, Hankey has demonstrated remarkable financial acumen and entrepreneurial vision. The son of a Ford dealer, he studied finance at USC before revitalizing his father’s struggling dealership in the 1970s. This initial success led to expansion into auto lending, culminating in Westlake Financial becoming one of America’s largest subprime auto lenders, partnering with approximately 50,000 dealerships across all 50 states. Hankey’s business empire grew to encompass auto insurance, rental cars, dealer software, and significant real estate investments, including the mixed-use Circa project opposite Los Angeles’ Crypto.com Arena. His Knight Specialty Insurance Company also made headlines in 2024 by providing the $175 million bond for Donald Trump following his (later overturned) New York civil fraud judgment. This diverse portfolio has built Hankey Group into a financial powerhouse managing approximately $30 billion in assets.

Despite his personal relocation, Hankey confirmed that his business empire will maintain its Los Angeles headquarters for now, though he expressed greater enthusiasm for investing in Nevada given California’s political climate. While he retains ownership of three California properties, he plans to spend roughly two-thirds of his time outside the Golden State. “There’s no reason to be in California full-time,” he stated matter-of-factly. Hankey’s sentiments echo those of several other high-profile billionaires who have criticized or responded to California’s tax proposal, including Rippling CEO Parker Conrad, Uber founder Travis Kalanick, and venture capitalist Chamath Palihapitiya. Some have already departed California, most notably Google co-founder Larry Page, who invested $173.5 million in two Miami properties last December—though Page’s continued ownership of California homes raises questions about his residency status for tax purposes.

California’s billionaire tax proposal has created clear division among political and economic stakeholders. Governor Gavin Newsom has publicly opposed the bill, which is sponsored by the Service Employees International Union–United Healthcare Workers West. Meanwhile, David Gamage, one of the proposal’s authors and a professor at the University of Missouri School of Law, has dismissed concerns about billionaire flight, claiming academic research consistently shows “very few, if any, actually move” in response to wealth taxes. This assertion faces significant pushback from wealthy former Californians like Russell Savage (formerly Russ Weiner), founder of Rockstar energy drinks, who responded bluntly: “Larry Ellison left. I left. Elon Musk left. You go down the line. I mean, the proof is in the pudding. They say no one’s leaving. It’s bullshit. It’s a complete lie. It’s going to destroy the state.”

For Hankey, the decision to leave California represents not just a response to the immediate tax proposal but a strategic calculation about future tax policies. “I just don’t think it will be a one-shot deal,” he explained regarding the proposed wealth tax. “It’s going to come back again as soon as California needs money again.” This perspective reflects a growing concern among ultra-wealthy individuals that progressive tax policies targeting billionaires might represent the beginning of a more extensive tax restructuring rather than isolated measures. Hankey’s $21 million Nevada penthouse purchase thus symbolizes a broader phenomenon: the increasing willingness of America’s wealthiest citizens to physically relocate in response to regional tax policies. As states compete for tax revenue while simultaneously working to attract and retain high-net-worth individuals and businesses, the mobility of extreme wealth presents both challenges and opportunities for state economies and tax policies across the United States.