Income taxes: withholding: real property sales.

Existing law requires the transferee of a California real property interest, in specified circumstances, to withhold, for income tax purposes, 313% of the sales price of the property when the property is acquired from either an individual, or a partnership or corporation without a permanent place of business, as specified. Existing law also allows, by election of the transferor, alternative withholding amounts that are not less than the amount of gain required to be recognized under income tax laws multiplied by the corporation tax rate, bank and financial corporate tax rate, the highest personal income tax rate, or the current "S" corporation tax rate plus the highest personal income tax rate, as applicable. This bill would eliminate these withholding provisions for the disposition of a California real property interest that occurs on or after January 1, 2016, and would instead require the transferee of a California real property interest to withhold 3â…“% of the purchase price of the property if the property was either acquired from a person, who is not a resident or who after the transfer of the real property will no longer be a resident of this state, or from a corporation, if after the transfer that corporation has no permanent place of business in this state.