http://calcpablogs.org/buzz/2009/03/03/california-real-estate-withholding-laws-change/
Assembly Bill 3078 amended California Revenue and Taxation Code secs. 18662 and 18668 withholding laws effective Jan. 1, 2009, as follows:
▸ Withholding Rates: Non-California partnerships are now subject to withholding requirements on the sale of California real property at a rate of 3 and one-third percent of sales proceeds or 9.3 percent of gain. The alternative withholding rates for the sale of California real property increased to 10.8 percent for S corps and 12.8 percent for financial S corps.
▸ Installment Sales: Buyers are required to withhold on the principal portion of each installment payment if the sale of California real property is structured as an installment sale.
In addition, withholding amounts can be collected from the withholding agent if the withholding agent fails to withhold or remit the withheld amounts. The new statute provides a clearer method for assessment and collection of unremitted withholding.
