Cal Witholding

This requires that 3 1/3% of the sales price or an alternative withholding amount be paid to the Franchise Tax Board and applies to non owner-occupied property. The Buyer must withhold this amount and is responsible however, the Buyer can request the task be passed on to escrow. Escrow may charge a fee for processing the withholding or waiver. This tax is a prepayment of California State Income tax for Sellers on the taxable gain of California real property.